The Costs of purchasing a home...

Options in financing your new home are endless, however regardless what program you choose there are some upfront costs you will have to pay, even if you are using a 0% down loan program and having the seller pay the 3% closing costs.

1st Expense: Earnest Money - $1000 or 1%

An earnest money check is provided at the time you write the purchase agreement. It is used to show the seller you are serious about purchasing their home. The check is deposited upon acceptance of the purchase agreement and goes towards your downpayment or closing costs at closing. The earnest money check is typically $1000 or 1% of the purchase price.

2nd Expense: Inspection - Optional $295-$350

After acceptance of the purchase agreement, if you chose to have an inspection, you must hire the inspector and have the inspection done typically within 5 business days of acceptance of your purchase agreement. The inspector must be paid at the inspection and typically costs between $295-$350 depending on the inspector.

3rd Expense: Appraisal - Approximately $350

You will have to provide your lender with an appraisal check. This check usuallyhas to be paid within the first two weeks of acceptance of your purchase agreement so that the appraisal is done right away.

4th Expense: Home Owners Insurance - Between $600-$1000

The final expense you will have prior to closing is purchasing homeowners insurance. Your insurance will vary depending on your insurance company, the age of the home you are purchasing, distance to a fire department/fire hydrant, etc. Typically to get the best rate contact your car insurance agent make sure to do this at least a week before closing...