Welcome back to The Open House. Are you budgeting to buy a home? If so, you want to make sure that you are prepared for the upcoming fees and payments that might come up during the process. In this week’s article, I will explain the first few fees to expect when you are purchasing your home.

First rule of thumb to remember when searching for your dream home: make sure your mortgage will be 25% or less than your monthly income. Doing so will put you in a good position to still be able to live a nice lifestyle, pay other bills and not be “house poor”.

After you find a home that you love in your price range, you will submit an offer and provide the seller with earnest money. Earnest money is sort of like a security deposit to show the seller that you are

serious about purchasing the home. This will typically be 1-3% of the sales price of the home and is put toward the down payment and held in an escrow account until the deal is done.

After the offer has been accepted, the buyer (you) wants to get the property inspected. A typical inspection from a qualified professional will cost you anywhere between $300-$500. Doing an inspection will guarantee that you know the condition of the home prior to purchasing it. If something comes up during the inspection, like foundational issues, you can get your earnest money returned to you. My advice… spend the extra money and get the inspection, you’ll have a great peace of mind.

If nothing detrimental comes up during inspection, then the next thing you want to do as a buyer is get an appraisal done on the home. This will tell you the market value of the home and will cost anywhere between $300-$500. Most mortgage lenders require an appraisal to be done to ensure the mortgage is equal to the value of the home. The appraiser will determine if the sales price is too high, too low or right on target.

I will continue this topic next week and discuss down payments, homeowners insurance, closing costs and additional costs. But, if you have any questions in the meantime, contact me. I would love to assist you!

Falyn M. Davis

Buying * Selling* Leasing * Appt Locating

Licensed Professional Realtor

Cell Phone: 832-396-6276

Email: FalynMDavis@gmail.com

Social Media: @FalynDavis