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How much does it cost to buy a home?

By
Real Estate Broker/Owner with HomeBuyer Brokerage

How much money is needed to purchase a home?

You will need a significant amount of cash to purchase a home. Most home buyers will use a conventional, FHA, or VA loan to purchase a home. Depending on how your contract is structured, you will need a down payment, earnest, money, deposit, and closing costs.
With a VA loan it is possible to purchase a property with a small amount or sometimes no amount of cash. These terms should be explained to the home buyer who is working with a qualified local lender to purchase the property.

The earnest money deposit is money that is placed into an escrow account once the contract has been ratified. Ratification happens when the buyer and seller have agreed on the terms of the contract and have signed all the documents making the contract enforceable. In the Washington DC area the earnest money deposit is typically between three and 7% of the sales price. In a competitive market like we are seeing now in spring 2023, earnest money deposit can be much higher. 

Learn  more about what to expect when purchasing a home on my website, homebuyerbrokerage.com. Our brokerage is dedicated to serving only homebuyers in the greater Washington DC and Baltimore areas. We are an exclusive buyer brokerage. All our agents are licensed Realtors in Virginia, Maryland and Washington DC.

Posted by

Victoria Lynne Henderson

Real estate broker and business owner of HomeBuyer Brokerage serving buyers in Washington DC, Maryland, and Virginia. Victoria was born in Washington D.C. and loves her hometown!

Learn more about exclusive buyer brokers & agents at HomeBuyer Brokerage

 

 

Certified Negotiation Expert

Serving home buyers in Washington D.C., Maryland & Virginia 

Comments(2)

Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Afternoon Victoria Ray Henderson 

This is good information and you are smart to include a link to your website. What do you think if FHA & the 40-year mortgage?

Apr 15, 2023 10:37 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Apr 16, 2023 02:44 AM