The most common concern buyers have when preparing to purchase and finance a home is how much money they will need up front. Although an exact number cannot be given without more information, below is an illustration that will help you understand what you will need.

Earnest Money

Money you put down on the house with your purchase contract. It shows the seller how serious you are about buying their home. At closing, the earnest money goes toward your closing costs and down payment. It is given at the time you sign your purchase contract and is typically in the form of a personal check that’s made payable to the title company of your choice.

Closing Costs

Monies the lender requires from you based on interest rate, type of loan obtained, etc. Other items that are included in total closing costs can be home warranty, inspection, prepaid interest and insurance.

Home Inspection

An important tool that can be used to verify the functionality and life expectancy on many major items in your home such as plumbing, electrical, roof, air conditioning, etc. Most home inspectors also provide a list of money saving maintenance tips to help you as you enter into homeownership.