HOW MUCH DOES IT COST TO BUY A HOME WITH FINANCING?

Buying a home entails numerous upfront costs. Some are paid out-of-pocket after the seller accepts your purchase offer, while others are paid at closing. Here are 7 Associated Costs of Buying a Home you should consider before making the purchase.

• Earnest Money. Earnest money generally ranges from 5% to 10% of the home’s purchase price, depending on local market conditions and the seller’s preference.

• Down Payment. Typically ranges from 3.5% (FHA loans) to more than 20% of the purchase price.

• Home Appraisal. Lenders require a home appraisal prior to approving the loan. Appraisal costs, typically $300 to $500.

• Home Inspection. The cost is similar to the appraisal and is usually paid at the inspection.

• Property Taxes. This expense varies widely based on your local tax rate and the closing date. You could be responsible for nearly six months of property taxes, or practically none.

• First Year’s Homeowners Insurance. Costs vary based on the value, style, location, and contents of the home, as well as your credit score.

REFERENCE: Trulia Blog

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