Buying a Home | What Expenses to Expect
A new or first-time home buyers #1 question when buying a home is: “How much money do I need? And what are the expenses I need to expect?”
The Urban Nest Atlanta team wants to make sure our home buyer clients are armed with as much information as possible when purchasing a home. We want you to be able to make an informed decision so that you can pat yourself on the back in the years to come!
This home buying expenses may vary from state-to-state, but here a breakdown of the up-front costs for Atlanta, Georgia home buyers:
1) Earnest Money………….Typically 1% of the purchase price
** Due when you submit your offer on a home and returned (or credited back) to you at closing
2) HOME INSPECTION ……..$350 – $650 (pricing depends on the size/age of the home)
3) HOME APPRAISAL……….$350 – $550
4) LOAN APPLICATION FEE / CREDIT CHECK…………… Varies by Lender
5) TERMITE INSPECTION (optional, but recommended)………… $45 – $75
6) LOW-FLOW PLUMBING CERTIFICATE (unincorporated Dekalb County)…. $75
TOTAL (ESTIMATED) COST FOR A $200,000 HOME –> $2,950
TOTAL (ESTIMATED) COST FOR A $400,000 HOME –> $5,150
Please note that the costs above do not include the money you’ll need for the downpayment on the home and/or the closing costs that are charged by the mortgage company. Depending on the type of mortgage loan you get, you will need a minimum downpayment of 3.5% to 10%+ of the purchase price. There are a few special circumstances where you may qualify for NO downpayment, so it’s important to talk with a mortgage lender before you start your home search! They will be able to give you a solid estimate of downpayment costs, closing costs and also help you find a monthly payment that you are comfortable with so you know how much you should spend on your new home.
If you have questions about the home buying process and/or the other fees associated with buying a home (i.e. closing costs, lender fees, etc), please contact the Urban Nest Atlanta team anytime. Our Atlanta real estate agents would be honored to assist you! We’d also be happy to recommend a few Atlanta mortgage lenders if you would like to get a more accurate estimate of the cost of buying a home.