How much money do I need to close on a home purchase?

Several things need to be considered to answer the question: How much money do I need to close on a home purchase?  Checking with a lender will give you a better answer to your specific situation, but this guide will provide the general information.

Down payment

– The down payment can be 0% – 20%, depending on type of financing

Home inspection

– A home inspection can range from $275-$400, depending on the size of the home.  This usually includes a termite inspection.

Homeowners Insurance

– A 1-year homeowners insurance policy will be required prior to closing.  After that, you will pay into the escrow account which will be used to pay the premium each year.

Closing costs

– Closing costs are generally 3 – 3-1/2% of the amount financed (this could be higher or lower, depending on the price of the house) and you can negotiation to have this expense paid by the seller.  There are other expenses that may come up, but these are the most common ones.

Other costs

Other costs that may need to be considered are new appliances as many homeowners will take them. In the Athens area, the refrigerator, washer, and dryer are not typically left in the home. Sometime window coverings won’t be left but usually installed blinds are included (considered attached fixtures). If you are moving to a larger home, you may need to purchase furniture.