1) Earnest Money – This is a good faith deposit that usually accompanies your accepted offer, and goes toward the balance of the purchase. Seller typically determines the Earnest Money Amount, these funds are held by a 3rd party until the transaction is complete.
2) Home Inspection – Home inspections are important to insure that the home you purchase is sage and up to State and Local codes. It is best if this functioned is performed by a state licensed inspector. Home inspections range anywhere from $250 to $600 Home inspections and the cost are typically determined by the buyer, and does not go toward the balance of the property.
3) Closing Cost – Many parties have an interest or involvement in your home purchase and closing day is the time most of these entities collect their fees. Closing cost include real estate attorney fees, tax payments, title expenses, and mortgage processing fees, among others. These can vary by locality and the price of your home. For the purposes of establishing a savings target, it is recommend that you budget 2-5 percent of your total purchase price.
4) Cash Reserves – Some lenders will require you to have a certain amount of remaining cash available at the time of closing as a stipulation of the loan. It’s often based on your monthly mortgage obligation and a common range is 2-6 month’s worth of payments.
5) Pest Inspection – If you’re buying a home in the desert a pest inspection may be necessary to insure that your new home if free from pest and insects. These inspections can run anywhere from $100 to about $250.
In addition to these cost buyers may incur additional fees depending on the home they purchase, including but not limited to, termite inspections, well inspections etc. Your agent should be able to provide you with a rough estimate of most of these fees and in the case of Closing Cost, ask your agent to provide a Net Sheet before closing.