Buying a Home? Make Sure You Understand These Costs

Buying a Home? Make Sure You Understand These Costs

Buying a home is a complex process. While you can generally find the price of a home with a simple online search, there are a number of other costs associated with buying a home that aren’t necessarily spelled out in the listing.

As a buyer, it’s important to know all the costs associated with buying a home; that way, you won’t find yourself facing any expensive surprises during the homebuying process.

So what, exactly, are those costs?

A recent article from realtor.com outlined key costs of buying a home that buyers should be aware of, including:

 

1. Earnest money

Earnest money is a deposit that shows the sellers you’re serious about buying their property. While it’s common to offer 1 to 2 percent as an earnest money deposit, that can change based on market conditions. For example, you might need a higher deposit in a hot market, or a lower deposit in a cool market.

 


2. Origination fee

Lenders charge an origination fee for completing your loan. This fee, which is a percentage of the loan amount (generally in the 1 percent range) covers things involved with the processing of your loan, such as underwriting.

 


3. Appraisal and inspection costs

If you’re using a mortgage to buy a home, you’ll need to get an appraisal to determine its fair market value, which generally costs somewhere around $300 to $400. You’ll also need a general home inspection, which can run between $300 and $500, and may need additional inspections, like a radon inspection or pest inspection, which will increase the cost.

 

 

Are you still looking for your dream home? Get in touch with us and we'll help you find it in Jacksonville, Nocatee, and St. Augustine Florida. 


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