At the same time as (or just before) you begin searching for your home, you need to be getting yourself financially able to buy a home. Some people are able to pay all cash for a home, but most have to finance it (we work with great lenders who can hold your hand and help you along the way). To be able to help you find your next home, we need to know not only how much home you can buy (overall price) but how much payment are you comfortable making (and how much is the lender willing to let you make). This information comes in especially handy because property tax evaluations and HOA fees can make the monthly payment of two equally priced properties very different. Most offers require proof of funds (if paying cash) or pre-approval to be submitted with your offer. Without giving out sensitive information, we will need this to assist you in buying a home. Some sellers (usually high end homes) require that you prove you are financially able to buy the home before they will even let you view it. You are expected to provide an Earnest Money (EM) deposit to show the seller that you are serious about buying their home. This is not a requirement, but it does solidify your intent… without it the seller may reject your offer. The more EM you provide up front, the stronger your offer appears… even though the seller doesn’t actually get it until after all of the papers are signed at the closing table. EM could be provided using a personal check, certified check, money order, etc. EM goes toward the down payment you are required by the lender to be able to secure the loan so it isn’t just money that you are throwing away. This is submitted with the offer and is required to be deposited within 2 business days of the seller accepting your offer (so make sure that the funds are available). Typical EM deposits range from $500-2000, but much more could be expected for homes exceeding $500,000 in value. Another expense is the home inspection if you choose to have one. We highly recommend this, but it is not required. Depending on the home, services you choose, and company that you choose you should expect this to be in the neighborhood of $350-550. Most inspection companies require payment on the day of the inspection. Your lender will require a home owner’s insurance policy effective the day of closing. Most companies allow for this to be paid at closing but check with your provider. If this will be paid at closing we need to ensure that the title company has the invoice so that they can get it paid for you. Your lender will need to have all of the insurance information provided to them well in advance of the closing day. We recommend that you have your policy secured within 10 days of going under contract… even if it won’t be paid for until closing. The appraisal is an expense that is often rolled into the expenses paid for at closing, but is required by the lender. Typical appraisal fees are around $350-450. Ask your lender if these can get paid at closing or if it is required that it is paid up front. (almost all cases are paid for at closing) At closing, you will be required to fulfill your financial obligation. Depending on the loan that you are getting, down payment requirements could range from 0-5% minimum (subject to loan limits). Of course, you could put down more than that if you are able and willing to. The EM deposit paid earlier is directed towards the down payment. Other expenses are Title Insurance (for the buyer as well as the seller), survey fees, recording fees, prepaid escrow deposits (putting money aside for the lender to pay future tax and insurance payments on your behalf), recording fees, filing fees, etc. Typical closing costs for a $200,000 home are in the neighborhood of $3-4,000 plus the remainder of your down payment. There are some income based down payment assistance programs to help you with the down payment (if needed) and concessions can sometimes be negotiated to have the seller pay some of your closing expenses.