Money Out of Pocket!
Buyer Tip: Money out of Pocket
The first expense will be your escrow deposit or earnest money as it is sometimes called. It is usually 1% to 2% of the purchase price. This is within a few short days after you execute sales contract.
During the first phase you met with a lender to get preapproved. Part of that process will tell you how much you need for a down payment based on your loan program and desires. Some loans allow 3.5%, 5%, 10%, and 20% of the purchase price. The down payment is paid at closing and takes into account your deposit.
Inspections are the next expense. Depending on the inspections chosen, they can amount to $1,000 paid at time of inspection.
Most lenders ask you to pay for the appraisal at time of service. This can range from $400 - $800.
The lender explained closing costs at the time you were preapproved. These expenses are paid the day of closing and are included with the wire of the remaining down payment.
Did today's tip spark a question? Give me a call!
David Shippey | Xcellence Realty
863-521-4517
Unforgettable Service | Undeniable Results
Serving Central Florida Home Buyers and Sellers Since 2005
Comments (0)
Be the first to comment on this post!
Post a Comment