The Costs to Expect When Buying a Home

Beyond the down payment, here's what buyers actually spend. A good rule of thumb is to budget 2.5% to 3% of your loan amount for closing costs.

What to expect, and when

• Earnest money — typically 1% to 5% of the purchase price, due 1 to 3 days after your offer is accepted, and applied to your purchase.
• Home inspection — $400 and up depending on size, paid at inspection. Add a sewer scope on older homes.
• Appraisal — roughly $600 to $1,000, usually 1 to 2 weeks after acceptance.
• Credit report — $30 to $50.
• Mortgage points — typically 0.5% to 1.5% of the loan, if you buy them.
• Down payment — 3% to 20% of the purchase price, at closing.
• Title insurance — roughly $800 to $3,000.
• Escrow fee — roughly $1,500 to $1,800, typically split with the seller.
• Loan processing, underwriting, recording, courier and notary fees — a few hundred dollars each, at closing.
• Prorated property taxes, prepaid interest, and homeowner's insurance — based on your closing date.

Before closing you'll get a settlement statement from escrow. We review it alongside you to make sure everything you agreed to made it into the document.

What is title, and why does it matter?

You're buying the property and the legal ownership of it. Before closing, a title search looks for anything that could cloud that ownership. The three we see most: liens from a previous owner's unpaid taxes or debts, easements like a shared driveway or utility access, and restrictive covenants such as HOA rules. Most issues get cleared before closing.

What is escrow?

Escrow is the neutral third party that holds the money and paperwork. They hold your earnest money, manage title transfer and insurance documents, prorate taxes, HOA dues, and utilities, prepare the final accounting, then record the documents with the county and disburse the funds.

After closing

Moving costs, utility deposits, and the things every new owner discovers. We suggest budgeting 1% to 2% of the purchase price a year for maintenance.

Figures are planning estimates, not quotes. Your lender's loan estimate and the closing disclosure are the authoritative numbers.