Upfront Costs You NEED to Know About When Buying a House

Everyone has heard about down payments and closing costs, but do you know all of the expenses that could go in to purchasing a home?

Here are some common costs you can expect in a Hampton Roads real estate transaction:

- Appraisal and Credit Report:

At the time you apply for your loan, you will likely need to write a check for the cost of the appraisal and credit report. If the seller(s) agree to pay all or a portion of your closing costs, this cost can be credited back to you at the time of closing.

Estimated costs range from $500-700.

- Earnest Money Deposit:

This deposit shows seller you are serious about making an offer. Amounts vary depending on market conditions, price of home, etc, but I can give you a rough idea at your buyer consultation about what to expect for this cost. This deposit goes into an escrow account and is held through the entirety of the transaction. If someone defaults on the terms of the contract, the opposite party not in default typically gets these funds. If everything goes to plan and we get to closing, it gets credit toward the buyer's side of the transaction

- Home Inspection:

The home inspector gets paid at the time of the inspection (which typically occurs 3-14 days after you get under contract) Costs vary based on the inspector, size and age of home, etc.

Typical fees range from $350-550 for an average sized home in the area.

- Other Inspections:

Depending on the contract or the home you are offering on, you may want to consider other inspections such as chimney inspections, pool inspections, termite & moisture inspections (often requested in this area due to the Coastal Virginia humidity!), lead-based paint risk assessments, etc. We will discuss these along the way in our search, along with cost, but it wouldn't hurt to have a few hundred dollars in savings just in case you want to pursue any of these inspections.

If you have more questions about the Home Buying Journey, ask away in the comments!

I also have a wonderful Home Buyers Guide that I would love to email your way. Just fill out the form below and I will send it over to you!