3 Fees Associated With Buying a New Home
Here are the sort of fees you’ll be looking at when you decide to buy your new home.
Buying a home isn’t as simple as putting down a down payment and then making your mortgage payment. There are a number of fees that come along with a home purchase, and we’ll be looking at three of them today in the first section of our two-part series. Here’s what you should be prepared for:
Closing costs. Closing costs are a group of fees made up of lender fees, a proration of homeowners insurance, title insurance, attorney fees, and more. These all have to do with the mortgage aspect of home buying. Someone has to pay these, but depending on the market, the party who pays for these closing costs can be negotiated. If you get in on a hot listing, it may not be best to ask the seller to pay. If it’s the opposite, though, you may be able to talk the seller into contributing. Ultimately, the buyer is responsible for making sure it’s paid. Closing costs are due when you close and are included as part of your down payment.
Earnest money deposit. This is the first check you write when you buy your new home; it’s essentially good faith money. You get this earnest money back as long as you don’t terminate the contract outside of your right to do so. This is why it’s important to partner with a great real estate team and lender—part of our job is to protect your earnest money. The amount you choose is left up to you and your agent, but we’ve found that earnest money payments in Georgia are typically between 1% to 2%. The higher side is more for multiple-offer situations where you want your earnest money to stand out.
Home inspection check. This ranges anywhere from $350 all the way up to $1,000 or even more. Inspections are incredibly important, so you know this money is well spent. Some things you can pay for are a general home inspection, termite inspection, and radon inspection. Depending on what is found, your inspector may recommend an HVAC inspection, mold inspection, structural inspection, and more. Just know that you’re typically looking at $450 to $650 for your home inspection.
If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you.