Home Buyer Costs

As outlined in the financing your home purchase tip, the fees associated with closing when you buy a home can add up quickly. Below we’ve covered some additional common buyer expenses incurred outside of closing:

• Whole House Inspection (depends on home $250-$800): A home inspection will usually be completed within 10 days of the contract. It includes inspecting built-in appliances, structural components and operating systems of the property.

• Termite Inspection ($60-$80): Must be done within 30 days of closing by a licensed inspector. Any infestation of active termites must be chemically treated before closing.

• Escrow Account: The lender may require a deposit of the cost of 2-6 months of taxes and hazard insurance to be put into a separate non-interest bearing account to be held towards the payment of the following year’s taxes and insurance expense. These bills are then forwarded to the lender for payment.

• Interim Interest: Interest is collected on the loan from the date of closing through the end of the month when the loan is closed.

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