Buying a home in today’s market is an exhausting process. With the low inventory level, you can expect to make offers on multiple homes before you finally have an accepted offer. Just when you think you’ve completed the process, it hits you, closing costs. 

Closing costs can range anywhere from 2-5% of the purchase value of the property. Here are some of the most common costs incurred on closing. 

Appraisal – Before lenders agree to extend a loan, they’ll want to verify the value of the property being purchased. As a buyer, you are responsible for paying for the appraisal, which typically costs $400-500. 

Home Inspection - While not mandatory, home inspections are highly recommended. Most realtors will include a home inspection clause in their contract to give buyers a chance to have the home scoped out by a professional to uncover any major, minor and latent problems that may not have been noticed during the initial walk-through. You can estimate anywhere from $300-700 to have a home inspected. 

Lawyer fees- In a home sale, there’s quite a bit of paperwork exchanged between the buyer and the seller, so a lawyer is necessary to have the required documents prepared. Expect to pay around $500 on legal fees. 

Deposit- To make an offer, a deposit that counts towards your down payment is required. This shows the seller you’re serious and committed to buying their property.

Questions on how much you should expect to pay in closing costs? Send us a message or give us a call!