What are closing costs?

What are closing costs?

If you are a first time home buyer that is preparing to start your home search, here are some additional financial expenses that you need to be prepared for out of pocket, and additional to your closing fees:

Home Inspection Fee:  $400-$600. Depending upon the size of the home, and the Home Inspection Company that you select.  The home inspection is done typically within 7 days of an accepted offer.  This fee is paid to the home inspection company, outside of escrow and/or the closing costs.

Home Appraisal Fee:  $500-$650. Within 17 days of your accepted offer, your lender will order a Home Appraisal.  This Appraisal fee is paid to your lender via debit, credit card or check, the appraisal fee is paid outside of escrow and/or closing costs. 

What are closing costs:  Closing costs are approximately between 2% - 4% the purchase price of the home.  Closing costs are comprised of various fees,  Including loan origination, transfer, underwriting, Wire fees and other misc fees.

Down payment: Depending on what type of financing you have you will need to have a 3.5% down payment for FHA loans; 5% - 20% down for Conventional loans.   It's a great time to buy a house, but it's an even better time to start gettin financially prepared to successfully close on your home!