Buyers Costs Associated with Escrow
Our buyers always ask how much money do I need to buy a home. In fact I just had a request to go over these costs with a buyer I am meeting today so thought I would publish this list. This list is based on buying a home in Fresno CA.
1) Earnest Money Deposit (EMD). This is the amount of money you will deposit into escrow within 3 days once your offer is accepted. Usually $1,000 or 1% of sales price. This will do towards your down payment or if you are financing 100%, will be refunded to you at close of escrow
2) Professional General Home Inspection: Optional but recommended. A home inspection is a visual inspection of the structure and components of a home to find items that are not performing correctly or items that are unsafe. Approximate cost is $200 to $300 depending on size, age and components of home. Payable at time of service, usually within contingency period (17 days).
3) Appraisal fee: Appraisals can be placed on a credit card and are approximately $400 to $500. Payable at time of ordering, usually within first week of escrow
4) Pest Inspection: Optional. Performed by a reliable pest company to look for termites and dry rot. Inspection approximately $50 to $75. Payable at time of service, usually within contingency period (17 days).
5) Roof Inspection: Optional. Performed by a licensed roofing company to access life of roof. Inspection approximately $75. Payable at time of service, usually within contingency period (17 days).
6) Closing Costs: Usually 3% to 4% of sales price, depending on time of year, escrow company and lender fees. Closing cost assistance may be available from seller or lender. Due at close of escrow.
7) Home Warranty: A home warranty is a service contract that covers the repair and replacement costs of home appliances. The warranty generally covers equipment and appliances such as dishwashers, plumbing systems, electrical systems etc. that fail due to normal wear and tear. Approximately $360 payable at time of order. Can be ordered at close of escrow or after. Cost may be split or covered by seller.
8) Down Payment: The balance of the down payment is due prior to the close of escrow, usually 2 to 3 days prior. Down payment varies on type of loan. Down payment must be in form of cashiers check or bank wire.
9) Other Inspections: Buyers can choose a range of other inspections to be performed based on the property.
This list is pretty comprehensive and costs are approximate only based on buying a home in Fresno CA.
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