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Understanding the Expenses
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One of the questions that I get most often is "How much will buying a home cost me?". Since there are so many different loan options, I won't go into detail about lender/loan fees here. Instead, I'd like to introduce you to some of the expenses that home buyers encounter through the actual purchase period.

Earnest Money

Earnest money is a good faith deposit that shows the seller that you are serious about your offer. The amount is determined by the seller and/or the listing agent, but is negotiable.
Earnest money is delivered, often in the form of a personal check, when the offer to purchase is delivered. Your earnest money can be utilized to go toward the purchase price of the home, your closing costs, or (in some cases) can even be returned to you at closing.
If you are in default, then the seller and listing company keep the earnest money. I will always let you know if your decisions throughout the transaction could affect your earnest money.
For more about delivering an offer and earnest money for a home, click here

Application Fee/Appraisal

This fee of $300 to $350 is usually collected at your first face-to-face meeting with the lender. This fee is often held by the lender to cover the cost of the appraisal. If for some reason a transaction falls apart before the appraisal is conducted (or if an appraisal is not required), this fee will be returned to you.

Home Inspection

A typical home inspection costs between $225 and $300. However, if you wish to have other items inspected (like a well, mold, radon, etc.) or if you are purchasing a multi-family dwelling, the cost could be higher.
        

      

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