FINANCIAL OBLIGATIONS

Below is a list of potential financial obligations you will have related to your home purchase. This is meant to be a general guideline for your expectations and we/your lender will provide estimates based on the specific home you choose.

Earnest Money Deposit (Escrow)

Average ~ 1% (Due within 3 days of an accepted offer)

This is the good faith deposit provided as part of your offer. The amount is determined based on the sale price. It’s held by the listing brokerage or escrow company in a non-interest bearing escrow account.

Loan Down Payment (Due at closing)

The amount you will need for a 

down payment is determined by the type of loan you qualify for:

•   FHA Financing: 3.5% 

•   Conventional Financing: 

   minimum 5%

Inspections Average $500-$700 Depending On Home Size (Due at time of inspection)

•   Including whole home, radon,  

   termite, sewer and possibly others

Appraisal

Average ~ $450-$550

Lenders require one or more appraisals in order to approve your loan. (You will need to complete your payment up front)

Insurance

Buyers should budget for homeowners insurance, private mortgage insurance if the down payment is under 20%, and title insurance. Depending on the location, you may also need flood insurance. These costs protect both the buyer and the lender from potential risks.

Closing Costs

Average ~ 2%-5% of the sale price

Closing costs are the funds you will need to have in order to settle, unless negotiated otherwise.

Commission

Sellers may pay all or part of a buyer’s broker commission during a real estate transaction. If the seller does not pay on behalf of a buyer, you as the buyer may be required to pay commission.