Out of Pocket Expenses When Buying a Home

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Did you know there are a few things, in addition to the down payment, that a buyer has to pay for before closing on a home? We like to fully inform all of our clients every step of the way so that there are no unpleasant surprises.

The first thing to consider, after your offer is accepted, is that you will have to order a home inspection. Based on the type of property and size of the home, this can range anywhere from $500-$900, especially with add ons, like radon and termite inspections. Another separate inspection that should be considered is an oil tank sweep. This is generally about $400 and in areas where oil tanks are common, you absolutely want to make sure that there are no underground storage tanks (USTs) on the property.

An appraisal is the next out of pocket expense. When you are financing a home, the bank is going to come out towards the end of the transaction and make sure that the property is worth the sales contract price. This appraisal is a buyer responsibility and costs, on average, $500. 

The last out of pocket expense is your homeowner’s insurance policy. When financing with a mortgage company, they want to see a policy paid for a year in full. Depending on the location and whether or not you need flood insurance, you will need to pay for you all policies in full prior to closing. Getting quotes from a few different homeowner’s insurance policy providers is recommended. 

Buying a home is one of the top ten stresses in life. We love to make it an absolute smooth and pleasurable experience by keeping everyone up to date and knowing what the next steps are. If you are ready to begin your journey feel free to call or text us at 732-823-2483 or check out our website ShorePrimeProperties.com which is chock full of beautiful homes all along the Jersey Shore. 

Unsure of how much house you can afford? Click here to find out and start the process today!