text: At the risk of overstating the obvious, you spend a lot of cash when you buy a home. The down payment for your mortgage is only one expense. There are a seemingly endless thicket of other outlays as well: appraisal, inspection, deposit, cash reserves and more. The costs add up.
  How much cash you’ll need depends a lot on the size of your home purchase and how much you intend to finance, as well.
  At Simply Referable, we want you to be as fully prepared as possible for your home-buying experience.
  The Most Common Expenses Home Buyers Need to be Aware Of
  Earnest money deposit. Hopeful buyers need to be prepared with cash for a deposit to attach to their purchase offer. The amount of the deposit varies, depending on local custom, the amount of your down payment and size of your home purchase. An experience Realtor can help you with this.
  Home inspection. Every buyer should have a home inspection, usually within 10 to 15 days after the contract is approved. Most home inspections cost at least $300, and separate pest inspections average around $125. Also, if you are not on county or city water systems, a well inspection can cost $400.
  Appraisal. The average appraisal costs a little more than $400. Buyers sometimes pay for the appraisal when it takes place, and sometimes the fee is included in the closing costs paid on settlement day.
  Down payment. While some low- to moderate-income borrowers can find low down payment programs and zero down payment programs, in general, most people need at least 3.5 percent of the purchase price as a down payment on (a Federal Housing Administration) loan.
  Veterans Affairs loans, available to veterans and active-duty military families, have no down payment requirements.
  For conventional loans, a minimum down payment of 5 percent is acceptable for borrowers with excellent credit, but they will also have to pay private mortgage insurance.
  Some conventional loan and jumbo loan borrowers need to pay as much as 20 percent of the purchase price as a down payment.
  Mortgage origination fees and title insurance. Loan origination fees vary from lender to lender, and title insurance varies from location to location, so there’s no rule of thumb that applies everywhere.
  Let Simply Referable Help You Buy a Home!
  The small team of realtors at Simply Referable is deeply focused on creating a memorable buying experience for you and your family. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.