4 Expenses to Expect When You’re Expecting to Buy a Home

As you are on the hunt for the perfect home to buy there are several things to consider. Try not to be unprepared for expenses that are necessary everywhere you'll go.

These expenses can play a factor in how you plan out your every day life. It is important to consider these costs when getting a home. This is not a way to scare you from financing your home. Instead, it's about giving you the information to plan ahead.

At Direct Lenders, LLC we believe everyone deserves to know what they are committing to before they are knee deep in it. There are four specific expenses that are important for you to know about. Each are very crucial to guaranteeing that your financial needs are met.

Lloyd Fiedler

Loan Officer

4 Expenses

1.     Earnest Money Deposit - This tends to be about 1% of the sales and is due once the contract is accepted.

2.     Home Inspection Fee – As one of the most necessary fees in the home buying process, the inspection will range between $400-$500. The payment will need to be paid typically 3-7 days after the contract is accepted.

3.     Appraisal Fee – An appraisal will cost between $450 and $550, which will need to be paid after the due diligence is settled about 7-14 days after the contract is accepted.

4.     Down Payment and Buyer Paid Closing Costs/Prepaid Expenses - These expenses will be due the day of closing, which will depend on your type of financing and loan agreements. 

We Are Here For You

Most lenders and giant banking companies will tend to neglect this important information from their borrowers, but Direct Lenders, LLC believes in making sure the borrower is in the loop on everything every step of the way.

When going through your prequalification for a loan, make sure to ask your loan officer about all fees. More specifically, have a clear understanding of what kind of down payment, closing costs, and prepaid expenses you will need to pay.

This information is important to understand, so that you can plan and not be thrown a curveball when you start to finalize your selections. At Direct Lenders, LLC we want to put your financial needs first and do what is best for all parties in this critical transaction.

Still have questions about some of these fees? Give us a call today at (877) 455-0440 and ask to speak with one of our expert loan officers. Our team is always willing to help in any way possible. Ready to apply for a loan? Go ahead and complete your application.