Expected Expenses from Contract to Close

Dated: November 13 2023

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Expected Expenses from Contract to Close

Embarking on homeownership is thrilling, but financial awareness is key. From contract to close, anticipate these essential expenses to navigate the home buying process wisely.

Earnest Money Deposit

  • Typically 1-3% of the home's price, this deposit secures your commitment.

Home Inspection Costs

  • A crucial investment costing a few hundred dollars, uncovering potential issues.

Appraisal Fees

  • A necessary expense, usually costing a few hundred dollars, ensuring the property's value aligns with your mortgage.

Loan Application and Processing Fees

  • Various fees for mortgage application and processing, including origination and underwriting fees.

Closing Costs

  • Encompassing title insurance, attorney fees, recording fees, and escrow fees.

Prepaid Expenses

  • Prepay property taxes and homeowner's insurance, prorated for your time in the home.

Contingency Fund

  • Advisable for unforeseen issues, a safety net during the closing process.
  • Understanding these expected expenses ensures a smoother path to homeownership, setting the stage for a successful and fulfilling investment in your dream home.
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Austin Moore

I grew up in a smaller town of about 10,000 people in Fulton, Missouri. After graduating high school and leaving Fulton, I then ventured to both Central Methodist University and the University Of Cent....

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