Your "good faith estimate" from your lender will spell out fees (NOT HIDDEN) such as title insurance, title binder, any loan origination fees, and other closing costs. In many loan programs, your mortgage company will allow the seller to pay closing costs for you, but it must be written in the contract. IF you ask the seller to pay your closing costs, this can also include your "pre-paids" which are things you pay for before you get to the closing table, such as home inspection, 1 year's insurance, etc. I try to get the majority of my buyer's closing costs and pre-paids paid by the seller. However, the mortgage company will probably want you to have "reserves" and many buyers don't understand what that means. It simply means some money in the bank, or can often times be a 401K. Most lenders will want to see 1-2 mortgage payments tucked away somewhere. So, your agent should be able to minimize out-of-pocket costs, making the buying process much easier on your wallet, leaving you as much much as possible for moving expenses, new paint, etc. IF you don't have your own agent, GET ONE! There is NO COST TO YOU for representation. Please contact me, as 95% of my business is stricly buyers and I would be happy to help. My web site is below.......

Hello Kristin -
That's exactly right!! There should be no hidden fees, by law. If you haven't done so already, you should talk to a lender to identify how much you are qualified for. Again, by law, the lender must provide you with a Good Faith Estimate that spells out any and all costs from the financing side - including such things as the appraisal fee for any property you make an offer on and PMI (mortgage insurance). By the way, knowing what you are qualified for early on is important for two reasons: 1) It helps you and your real estate agent search for properties you can realistically afford and 2) most sellers today require at least a letter of prequalification to accompany any offer you make.

As Real Estate Pro said, you should also be prepared to put down Earnest Money -- $500-$1000. Inspection costs can vary, depending on the type and number of inspections you decide upon, so you might want to call around to get several estimates. BTW - some cities offer certain inspections for free, so ask your Realtor or call the city where the property is located before making a final decision.

And simply for your peace of mind, too, ask your realtor if there are any fees associated with their services.

Someone meantioned something about hidden fees that could cost $3000-5000 and i just wanted to be sure because i never heard of such a thing. We dont have a ton of money saved up since this is our first time buying a house and we dont want to be stuck with fees in the end. I am meeting with a realtor this sunday so i will find all of this out!

Hi Kristin, I don't know why you keep saying "hidden" fees, there are no hidden fees, as that is illegal. All costs have to be spelled out in advance to you. The earnest money ($500 or so) and inspection costs (@$275) are the only fees paid before closing. A good Realtor will guide you through the fun of buying a home at no cost to you. The seller pays all the Realtor fees!!