- Mortgage Pre-Approval
If you are not buying a home cash, you will need a pre-approval.
- Earnest Money
Earnest Money is a good faith measure that goes with the contract. It proves to the sellers that you seriously want to buy their house.
- Money for Down Payment
Most down payments are now 3%-5% of the sales price. Your mortgage lender will help you determine this.
- Money for Closing Costs
Closing costs are typically 1% to 4% of the loan amount. Depending on the market, some of these costs maybe negotiated in the sales contract.
- Money for Inspections
It is highly recommended to have the home inspector to inspect your potential new home. The inspector should inform you of any serious problems with the home that needs repairs before closing.