What Costs Will There Be when I buy this home in the Olympia WA area? Yes that is a really important question for buyers to ask and understand! Because, even though you are likely getting a loan for a large part of this purchase, there will be some costs to you along the way.
First, as you talk with your lender to get preapproved, you will receive an estimate of the amount you will need to bring in at closing of the sale. This will include both the down payment you plan to make and closing costs and prepaid expenses. The down payment amount may be the minimum required for the type of loan you are getting, or you may choose to put down a larger amount - but this is something you will decide with your lender. The lender will also tell you how much the closing costs come to - and then we may be able to negotiate for the seller to pay some or all of that amount (so I will be asking about that when it is time to make an offer).
The lender will also let you know what the loan application fee is (often this covers your credit report and the cost of the appraisal).
It is customary to have an amount of earnest money indicated in your offer on the house you want, and that amount will be deposited in the trust account of either the escrow company who will be closing the transaction (or in some other agreed upon trust account). The amount of the earnest money is a negotiable part of your offer, but we can strategize about what amount might work best with your offer. Typically in the Olympia, WA area, earnest money of 1% of the purchase price is plenty, and often a smaller amount will be agreed upon. We will talk over the situations where you would be entitled to get your earnest money back if the sale does not close. And it will be credited to you at closing.
I highly, HIGHLY recommend you have a home inspection done on the home you are buying - even if it is brand new. The average cost of that inspection in the Olympia area is $400, and that will be due at the time of the inspection.
Those are the most common up front costs you will encounter as you buy a home in the Olympia WA area.
And there is some good news about money - when you close on the purchase of your new home, your first mortgage payment will usually not be due for 30 days (sometimes even longer) - so you may have a little extra cash to buy that new couch or put in some new carpet!
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