What to Expect - The Purchase Process
Before starting your homebuying journey, you need to be prepared.
WHAT ARE THE UPFRONT COSTS OF BUYING?
1. Earnest Money (Paid before closing)
2. Inspection Report (Paid before closing)
3. Termite Report (Paid before closing)
4. closing costs are 2% to 5% of the Purchase/Sales price.
Earnest Money is a measure of 'Good Faith' in your transaction.
Earnest Money is usually $1,000; Inspections are on average $375; Termite Inspections are on average $75
So depending on the area, the Buyer can expect up front costs from $1,500 to $2,000 before having to pay closing costs.
You can get more accurate closing cost numbers from the Lender when you get a Preapproval letter for the specific property they are purchasing.