Estimating Buyer Costs

Earnest Money. This is a variable amount typically determined as a percentage of the offering price. This is submitted with an offer and cashed and held in escrow by the listing brokerage. This is used to show sincere commitment and good faith to the seller.

Down Payment. This is the amount to be paid by the buyer at closing (along with a credit of earnest money). This amount is dependent upon the type of loan and should be discussed with your lender when securing a pre-approval. Lender will provide a Good Faith Estimate of buyer costs when a home is selected.

Inspection. It is always a good idea to have a thorough home inspection after an offer has been accepted. This is to be completed by an independent inspector of the buyer’s choice to determine that there are no serious defects to the home prior to purchase and address any issues accordingly.

Appraisal. Typically your lender will order an appraisal in order to secure financing. Fees are usually collected at the time of service from the buyer by the lender.

Homeowner’s Insurance. A premium may be collected by buyer’s homeowner’s insurance company to secure a policy. Typically the buyer’s lender or realtor will advise.

Additional Buyer Closing Costs. These fees vary and are negotiable as part of a purchase agreement.

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Additional Resources for Buyers

:: Estimating Buyer Costs

:: Choosing a Lender

:: Mortgage Calculator

:: Neighborhood Information

:: School Information

:: Frequently Asked Questions for Buyers