Upfront Costs When Buying A House: What you need to know

If you're planning to buy a house, it's important to understand the upfront costs associated with the process. In this video, we'll break down the five most common upfront costs you'll encounter; Earnest Money, Option Fee, Credit Report Fee, Inspection Fee, and Appraisal Fee.

Firstly, let's talk about Earnest Money. You put down this deposit to show the seller that you're serious about buying their property. The amount of Earnest Money can vary depending on the market and location, but it's typically around 1% of the purchase price.

The next fee is the Option Fee, which is paid to the seller in exchange for the exclusive right to terminate the contract within a specified period, usually around 10 days. This fee is typically around $100 but can vary depending on the market.

Thirdly, we have the Credit Report Fee. This is a fee that your lender charges to pull your credit report and assess your creditworthiness. The cost can vary, but it's typically around $30-60 per person.

Next, we have the Inspection Fee. You'll pay this fee to have the property inspected by a professional. The inspection fee can vary depending on the size and condition of the property, but it's typically around $300-500.

Finally, we have the Appraisal Fee. This is a fee that your lender charges to have the property appraised to determine its value. The cost of an appraisal can vary, but it's typically around $300-700.

Buying a house comes with a number of upfront costs that can add up quickly. Understanding these costs before you begin the home-buying process is important so you can budget accordingly. If you have any questions or want more information about buying a house, please comment below. Don't forget to like and subscribe for more helpful videos like this one!