Buying Expenses?

One of the areas that new buyers do not realize is the expense that goes into buying a home beyond the down payment. Your lender will require a deposit check for an appraisal. This will usually run between $300 and $450 depending on who is doing the appraisal.

Another expense to save up for is the 1st year of homeowners insurance. Some insurance companies will allow you to make this part of the closing and escrow, while others may want the 1st year of insurance paid in advance before closing. Once again, this depends on who you use for your insurance company. For many 1st time buyers, you should count on somewhere between $600-$900 for your insurance. There are many variables that can effect that number, so it should be used as just a guide. I have seen homeowners insurance rates lower than $600 and I have seen some rates higher than the $900.

A newer trend with buyers has been upfront payment on inspections. There are still a fair amount of companies and home inspectors that are fine with being paid at the closing of your home, but there is a trend where they want paid at the time of inspection. This could run anywhere from $200 on up depending on how many and what type of inspections you are requesting.