Before closing
Earnest money (commonly 1-3% of price, credited back at closing), the home inspection, and the appraisal are all paid during the contract period. Inspection and appraisal fees vary by market and property; figures in the several-hundred-dollar range are typical, and the illustrative numbers used elsewhere on this site assume roughly $400-$800 and $550-$900 respectively. None of the three are optional if you want to buy safely.
At closing
Closing costs run roughly 2-4% of the purchase price: lender fees, title insurance, escrow, recording, plus prepaid property taxes and a year of homeowners insurance. Your Loan Estimate itemizes all of it within three days of applying.
The move itself
Movers or truck rental, utility deposits and transfers, locks, and the immediate-need items every first home demands: a lawnmower, ladder, and the curtain rods nobody remembers. Budget $2,000-$5,000 for the transition month.
After you own it
The expense that separates comfortable owners from stressed ones is the maintenance reserve. Plan for 1-2% of the home value per year. A water heater fails on a Saturday; owners with a reserve call a plumber, owners without one call a credit card.
The short version
If you remember 4 things.
- Inspection, appraisal, and earnest money come due before closing.
- Closing costs: budget 2-4% of the price on top of the down payment.
- Reserve $2,000-$5,000 for the move-in month.
- A 1-2%/year maintenance fund is what keeps ownership comfortable.
Written for a demonstration website. Copperline Home Loans is a fictional company, holds no mortgage license or NMLS identifier anywhere, and cannot lend or advise. This article describes how the mechanics generally work; it is not personalised advice, and no form on this site sends anything to anybody.