The down payment is only part of what it costs to buy a home. Buyers also pay closing costs, inspection and appraisal fees, prepaid property taxes and insurance, and moving costs, and then the ongoing costs of owning start. Planning for these up front keeps closing day free of surprises.
What costs come up before and at closing?
- Earnest money, a deposit made with your offer that goes toward your purchase.
- Home inspection and any specialist inspections, such as sewer scope or roof.
- Appraisal, usually required by your lender.
- Lender fees for processing and underwriting your loan.
- Title insurance and escrow fees paid to the title and escrow companies.
- Prepaid items such as property taxes, homeowners insurance and interest.
What costs come after I move in?
Plan for moving, utility setup, HOA dues if the home has them, and regular maintenance. Many owners set aside money each year for repairs, since roofs, water heaters and appliances eventually need replacing.
How much should I budget for closing costs?
It depends on your price, loan and lender. Ask your lender for a Loan Estimate early, which lists expected closing costs, and compare estimates from more than one lender.
Ready to plan your purchase?
Molly can connect you with trusted lenders and walk you through every cost. Call 206-498-4137 or start your home search.