Buying a Home? Here Are the Common Costs You Can Expect

Buying a Home? Here Are the Common Costs You Can Expect

 Buying a home is an exciting milestone. But before you sign on the dotted line, it's important to be aware of the common costs associated with the process. Knowing what to expect can help you plan ahead and save up for all the expenses that come along with buying a home. Let’s take a look at some of the more common costs associated with buying a home so that you can be prepared when it comes time to make your purchase.

Down Payment

The most significant cost associated with purchasing a home is your down payment. This is typically between 3% and 20% of the total purchase price of your home and will vary depending on your credit score, income, and other factors. It may also depend on whether or not you are using an FHA loan or conventional financing. Generally speaking, if you have good credit and plenty of financial resources, you may qualify for lower down payments than those who do not have as much financial stability.

Closing Costs
Closing costs generally range from 2-5% of the total cost of your home purchase and cover things like title insurance, recording fees, transfer taxes, underwriting fees, loan origination fees, etc. These fees can add up quickly so it’s important to factor them into your budget when calculating how much money you need to purchase your new home.

Home Inspections
Getting a professional inspection is always recommended before purchasing any property; this will ensure that there are no major issues with the property that could cost you thousands in repairs down the road. Home inspections typically range from $300-$500 depending on the size of the property being inspected and can be an invaluable investment in protecting yourself from costly surprises after closing on your new home.

Now that we’ve covered some of the more common costs associated with buying a home, it’s time for you to get started planning for them! Make sure to plan ahead and save up enough money to cover these expenses so that when it comes time for closing day there will be no surprises or additional costs that stand in your way from owning your dream home. Good luck!