So many stories I would read about first-time home buying were always so vague. So here I am, prepared to be honest with our experience.
What we had to shell out:
1. Down payment (with our loan, we did 7% of the purchase price, but you can do FHA loans for 3-5% of the home purchase price). Obviously your highest cost, but the more you put down the less you have you pay interest on.
2. Home inspection - $500+ (we paid $350 + $150 for a radon test). Be warned, sometimes if home inspectors find something, like a cracked furnace or a clogged chimney, they then refer you to specialists who can confirm/deny there is an issue. This will cost extra.
3. Appraisal fee - $400. This was so that the bank could verify our home loan amount was lower or the same as the value of the house.
4. Closing costs - this varies. In our offer, we had the home owners pay $3,000 of closing costs, about average for our area and for the price of the home. We had to pick up roughly another $3,000 more, but we ended up rolling this into the loan (whichever you prefer).
5. Bottle of champagne - $20. Because we had to celebrate. We just bought a house!
|Obligatory picture of champs. We decided to demo the kitchen before popping the bubbly.|
Were there any other expenses you had when purchasing your home? What were they?