Closing Costs – Closing costs usually add up to around 2-5% of the purchase price. These charges typically include loan origination fees, brokerage charges, the appraisal, title and lawyers’ charges, title insurance, taxes, pre-paid costs, property insurance, HOA fees, surveys, deed transfer fees, and many various charges.
Due diligence– This is a deposit that is made payable to the seller as a “good faith” deposit. *seller’s money. The Due Diligence fee is due within 24 hours and a personal check, cashier’s check, or money order will be payable to the seller. The due diligence fee is non refundable. Typically .5 – 1% of the purchase price.
Earnest Money – A deposit given by the buyer to bind a purchase offer and which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited. If you cancel before the due diligence period, then you are refunded your earnest money deposit. The Earnest Money deposit is due within 5 days of the date the offer is accepted and will be made payable to the closing attorney. Typically .5 – 1% of the purchase price.
Appraisal- An appraisal compares similar homes that have sold to determine a fair value for the home you are trying to purchase. Your lender will require an appraisal to ensure that they are not loaning you more money than the home is worth. Appraisals typically range around $550
Home Inspections– You will always want to order a home inspection to inspect the home from top to bottom and make sure no major issues are present. You may decide to perform other inspections such as, HVAC inspection, Pest inspection, Septic inspection, Water/Well inspection, or Radon inspection. Inspections typically range from $300 – $750 depending on home size.