What to expect during the under contract process. You are ready to buy a home. You have saved your dollars and you have your down payment. But you want to know what will the costs be over and above the down payment. That is a great question. You need to be ready for all under contract process expenses.
The first money that will be required is the earnest money is oven required within a few days of the contract being accepted. It is not uncommon for the earnest money to be required to be provided within three business days of contract acceptance. The earnest money amount is what is requested by the seller and is apart of the contract. Sometimes when wanting to ensure your contract is accepted you may add to the earnest money amount. Doubling the requested amount or even tripling the amount requested by the seller. The earnest money is provided in the form of a personal check that is cashed and be credited to you at closing or you can provide the title company with a wire for the funds.
Under Contract Process Expenses: Inspection
The next cost that you will have once you have a property under contract is the cost of the inspection. Most inspectors charge based on the location of the property and the square footage of the home. The larger the home the more expensive the inspection. The cost can run anywhere between $400 to $750. Inspectors usually expect payment before they begin or at time of the inspection.
Another cost that you can expect to pay as a part of the process is the cost of the appraisal. How this cost is handled depends on the lender that you are working with. Some lenders want the money at time of the contract acceptance others will make the appraisal apart of closing costs. Make sure know what you the expectation is. If you are required to have the money upfront that can be as much as $500 to $800 that you will need to pay at time of contract acceptance.
Buying a home has expenses as a part of the process. This post gives you some idea of what to expect in terms of under contract process expenses. Contact us so that we can be your guide through the process of purchasing a new home.