Costs associated with home purchase
Conventional Loan | Sales Price: $200,000
- Down Payment $6,000 (As low as 3% down for first time buyers)
- Earnest Money $2,000.00 (Typically 1% of offer price. Submitted to title company with accepted offer, deducted from cash due at closing)
- Option Fee $100 (7 Day option period)
Inspection $400 (Estimate, price based on sqft of house)
Appraisal $595 (Estimate, lender will have exact amount) - Closing costs & Pre-paid items $5,000 (Estimate, lender will have exact amount)
- Funds needed before closing: $3,095 (earnest money + option fee + inspection and appraisal)
- Cash Needed at closing: $8,900.00 (down payment + closing/prepaid items, minus $2,000.00 earnest money, minus $100 option fee)
TOTAL FUNDS REQUIRED:
$ 11,995 ($6,000 down payment + inspection + appraisal + Closing Costs & Prepaid Items)
Estimated timeline
Day 1-3 Earnest money and option fee submitted to title company ($2,000.00 + $100.00)
Day 1-8 Option period (day one of contract is considered ‘day zero’ for option period)
Inspection happens during option period
Price and repair negotiations happen during option period
Any follow-up inspections/bids happen during option
Day 7 Appraisal is ordered (Estimated $595 due to appraisal company)
Day 7-30 Loan processing, ordering insurance, choosing home warranty
Day 34 Closing at Title Company (Down payment and closing costs due, house is yours)
First month of mortgage, traditionally no payment is due, talk to lender about specifics on this