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Buyer Costs

Buyer Costs
Down Payment: You are not required to put a 20% down payment that is a myth. When purchasing a home the buyer is responsible for the down payment. A down payment can come from checking/savings accounts, retirement accounts, a down payment assistance program, or a gift. Down payments can start at as low as 3% of the purchase price.
Upfront Costs: After your offer is accepted by a seller you need to be prepared to pay for a home inspection and appraisal report upfront. These fees can run about $500.00 each.
Loan Points: are optional fees paid directly to the home mortgage lender at closing in exchange for a lower interest rate. This is also called buying down the rate.
Closing Costs: Fees required to close the transaction. Closing Costs include loan origination fees, title search fees, escrow fees, loan points, credit report fee, flood certification fee, etc. Closing Costs generally run 2%-3% of the purchase price. Closing costs can be paid by the buyer, paid by the seller, or paid by a closing cost assistance program
Escrow: Escrow is a neutral third party company between the buyer and seller.
- Escrow ensures all terms of the contract are met by both buyer and seller to complete the transaction.
- Escrow holds the buyer’s earnest money deposit to purchase a home.
Buyer Costs
Impounds: Impound accounts are used to hold money to pay for your property taxes and homeowner’s insurance. A home mortgage lender sets up the account and adds the taxes and insurance to the buyer's monthly mortgage payments to ensure they are always paid on time.
Home Warranty: This is for your protection. It is best to always request in your offer when purchasing a home, for the seller to purchase you a Home Warranty. This gives you 1 year of security after you purchase your home that if anything breaks it can fixed or replaced for minimal cost by you for the first year of owning your new home.
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