Show me the Money: How Much Should I Expect to Pay Up Front when Buying a Home

Wanting to know how much money you'll need upfront in order to buy your new home, here's a breakdown of some common costs most potential buyers will have to cough up.
- Earnest Money (Typically 1% of offer price) - Money needed to show the seller that you are sincerely interested in the property; usually 1% of offer price. If the offer is accepted, money is either used toward closing costs or if seller is paying closing costs, then money will be returned to you.
- Inspection Cost ($300-350) - Once the potential buyer and seller agree to a purchase price, an inspection is usually scheduled. An inspector will prepare a report based on his/ her findings of structural, mechanical, electrical, and plumbing components of the home. Most contracts are "contingent upon inspection" meaning that when the inspection report comes back, if the results are unsatisfactory, the potential buyer can revise the contract, protecting them from unforeseen repairs.
- Appraisal Fee($350-500) - An appraisal is typically performed by the bank; this cost may also be included in the Lender fees that are grouped into closing costs.
- Credit Report Fee ($25-35) - Used by the lender to establish mortgage rates, this cost may also be included in the Lender fees that are grouped into closing costs.
- Closing Costs (up to 3% purchase price) - This is the money the potential buyer brings with them in the form of cashier’s check on the day of closing. It is possible for the offer to be written, so that the seller pays all or a portion of the buyer’s closing costs.