How much does it cost to buy a house?
This may sound like a silly question but buying a home does cost more than just a mortgage. It actually cost money to go threw the buying process. A few things factor into how much you will have to pony up before you get to the closing table. See the top 5 costs below!
1.) Type of loan & down payment required (speak to a loan officer)
There are basically 3 types of financing; Conventional typically
requires 5% down, FHA typically requires 3.5% down, and VA is zero down and only available to active or former military personnel.
2.) Earnest Money Deposit
This is money held in escrow and applied back to you at closing. It shows the seller you are serious about buying and the amount can vary but in a typical first time buyer price range I usually see any where from $500-$2000.
Home inspection - $300-$500
Termite - $100
Other inspections like pool & fire place - est. $100-$150
Appraisal - $400 approximately
4.) Realtor fees - vary by company
Most of the time in our market the seller pays both agents. This is not always the case but most often than not. If you can not afford to pay your agent ask them to only show you homes that are willing to pay their fee.
5.) Closing costs
You will need anywhere from 1%-4% of the sales price to cover everything. This number depends on your financing. Most of the time in our market we ask the seller to pay this for you but that is never a guarantee!
SOOO time to break open that old piggy bank!