EARNEST MONEY
Also known as good faith deposit, earnest money is a deposit that shows the buyers good faith in a transaction. Earnest money is typically 1-2% of the sales price and held in an escrow account until closing, at which point the buyer can put towards closing costs, down payment, or other fees.
DOWN PAYMENT
Depending on your type of loan, your down payment can be anywhere from 0 to 20%.
It's important to know that you do NOT need 20% down to buy a home - the average down payment for first time homebuyers is less than 10%!
HOME INSPECTION
A home inspection can cost anywhere from $300 to $700 or more, depending on the size and location of the home, as well as other factors. Buyers are usually required to pay for the inspection upfront.
APPRAISAL
Home appraisal costs range from $400 to $700 or more, depending on the size and location of the home, as well as other factors. Buyers are usually required to pay for the appraisal upfront.
CLOSING COSTS
Closing costs are an assortment of fees charged by the lender, title company, attorney, insurance companies, taxing authorities, and other closing settlement related companies. These fees are usually 2-5% of the sales price and include title insurance, origination fees, underwriting fees, and more.
EARNEST MONEY
Also known as good faith deposit, earnest money is a deposit that shows the buyers good faith in a transaction. Earnest money is typically 1-2% of the sales price and held in an escrow account until closing, at which point the buyer can put towards closing costs, down payment, or other fees.
