If you are interested in buying a home you have probably been looking at real estate in your area for a few months. You might have attended a few open houses, you might have even spoken with someone about finance. However, there are always unexpected costs when you are purchasing a home that you may not be prepared for.
If you are interested in working with a FHA loan, you will need to bring 3.5% of the amount of the loan with you to closing. 3.5% percent of the price of the loan can end up being a very large number. You are not allowed to take this money off of credit cards or take out a loan to fund it. You will have to prove that you have the cash or that the money was a gift.
You probably know that you are responsible for the fee of the inspection. An inspection on the home that you are thinking about buying is required for the loan in some states, but regardless, getting an inspection is always a good idea. An inspection of the home will run you a little bit of money, usually a couple hundred dollars depending on the size of the home and the year the home was build. Older and larger homes cost more than newer, smaller homes.
You, as the buyer, are also responsible for paying for the appraisal on the home. This appraisal of the loan is also necessary because if the home appraises for less than the listing price, you will not be able to buy the home for more than the appraisal. Depending on the state and the appraisal company, the appraisal is usually around four hundred dollars.