In keeping with this month’s theme #NationalHomeownershipMonth I wanted to answer a question I get often (and often times buyer’s don’t know they need to know). There is a lot that goes into buying a home. Many steps and check points along the way. Many ask, “What money is due and when”? So let’s answer that question:
1. Earnest Money - this is about 1-3% of the purchase price you offer. Due with the offer.
2. Inspection - home inspection should run about $500. You can add on other inspections like mold, radon, termite, pests.
3. Appraisal - this is ordered by your lender, if you are getting a loan to purchase the home. You can still order one if you are paying cash. Should run around $500 as well.
4. Down payment - this runs about 3-5% of your purchase as a minimum. There are many different loan options so make sure you consult with your lender, or ask your real estate professional for some help and referrals.
5. Cost of the loan - that’s right! This is often overlooked! There IS a cost associated with getting a loan to buy a house. Plan on 3-4%. This is basically like another downpayment.
The purpose of this video and others from my #NationalHomeOwnerShipMonth series is to help educate you and the public on what goes into buying and owning a home.
If you have any specific questions, please comment below, or send me a private message. I’m here to help serve!