Here’s a list of expenses to prepare for when buying a home:
- Down payment: This is typically a percentage of the purchase price and can range from 3% to 20%, depending on the type of mortgage and your financial situation.
- Closing costs: These include fees for services such as real estate attorney fees, title searches, loan origination fees, mortgage insurance, and other loan affiliated fees. They can add up to a significant amount, so it’s important to budget for them in advance.
- Inspection costs: Before purchasing a home, it’s important to have it inspected to identify any potential issues. Inspection costs may include a general home inspection, HVAC inspection, and a Termite Inspection (also known as a CL100).
- Appraisal fees: An appraisal is typically required by the lender to ensure that the value of the property is in line with the purchase price.
- Moving costs: Once you’ve purchased the home, you’ll need to factor in the cost of moving your belongings. This can sneak up on some people because it is easy to get caught up on closing on the home first!
Your local real estate agent at The Highland Company will be sure to explain these costs so that you can have a solid idea of how much you may need to save to close on a home!