Costs of buying a home - stacks of coins

Down Payment:  That is the percentage of the purchase price required by the lender (i.e.,3.5%, 5%, 10%, or more or zero down payment  for VA loans

Closing Costs: These are charges that the lender makes for lending a buyer the money to buy the home.  There are also other closing costs (i.e., escrow fees, notary fees, prepaid interest, property taxes, and homeowner’s insurance).  The closing costs average around 2% to 3.5%

 Deposit:  When an offer is accepted by the seller, the buyer generally needs to deposit money into escrow (usually between 1% to 2% of the purchase price).  The deposit is considered part of the buyer’s down payment.

 Appraisal:  If a buyer is obtaining financing, their lender requires an appraisal of the property.  It is the responsibility of the buyer to pay for this (average cost between $400 to $700.

Inspections:  When buying a house, it is important for the buyer to learn what they can about the condition. We always recommend that the buyer have a professional home inspection done during escrow.  There may be other inspections to consider, depending on the property.  The buyer pays for the home inspection.

 Supplemental property taxes: The buyer will usually receive a bill for supplemental taxes – which are separate from your regular property taxes.

Move in costs:  This can include things such as moving expenses, cleaning, painting, minor repair, etc.