Out of pocket cost for buying a home :
- Option Fee/ option period -which is a fee you give sellers to temporary pull the house off of the market for you to do inspections, make sure everything is in working condition, ask for repairs and renegotiate the contract. In this time you can for any reason change terminate the contract. But if you terminate, you are not refunded your option fee or any money you spent on inspections. If you continue then the option fee is a credit at closing. ($100-$150 for 5-10days)
- earnest money - this Is deposited at the title company and let's the seller know you are serious about the property. It is usually 1% of the sales price. It is credited to you at closing. If you withdraw during the option period then the fee is refunded but after that then the seller gets to keep the money.
- home inspection - You always want to have a third party inspect the property to make sure there aren't any thing you didn't know about the property and to make sure things are working like the are suppose to. They usually range from $350-500 depending on termite inspection, pool, sprinklers, etc.
- closing fees - these are different for each type of loan but sometimes you can ask seller to contribute, roll a few into the loan.. But you would need to talk to a lender
- down payment - how much cash you want to put down, again you would need to talk to a lender for more info.
I have some great lenders that I work with and would be happy to answer any other questions you may have. Please call or email if I can help!