Upfront Costs in Buying a House

Upfront (Out of Pocket) Costs In Buying a House

Option Money

This buys you the unrestricted right to terminate the purchase contract.
Non-refundable if you back out of the deal  Usually $150 - $500 when the contract is executed (signed by all parties) 

Earnest Money

Usually 1-2% of the Purchase Price will be held in Escrow at the Title Company.  This amount will go toward your down payment or closing costs when we close on the house. 

Inspection

The cost for your inspection depends on the size and if there are any special features on a home. A normal house inspection is $400-$500 paid to the inspector at the time of the inspection.
Examples of special features: septic, termites, sprinklers, pools, hot tubs,.

Appraisal

Typically, your lender will require that you use the appraiser of their choosing.
The appraisal fee is typically $700–$1200. This fee is paid directly to the lender.