Typical costs of buying a house
Here are the ballpark fees that you can expect when buying a home. These are just estimates, and you will get an accurate closing statement from your lender and the title company.
Before closing, out of pocket:
Earnest money — typically 1 to 2% of the offer price
A personal check or transfer at the time we write the purchase agreement. It is used to show the seller that you have ‘skin in the game’ and are serious about purchasing the home. Deposited upon acceptance of the purchase agreement and goes toward your down payment or closing costs.
Inspection — about $375-550
A home inspection cost will vary depnding on if you want and need a radon test. Here’s more info about home inspections.
Home owner’s insurance — approx $200-1200
Generally a month or two of premiums needs to be paid before closign, but some insurance companies and lenders require a year’s premiums in advance. Get 3 or more quotes and shop around.
Due at closing, out of pocket or maybe paid by seller
Down payment — 3.5-20% of the price
Your biggest cost will probably be the down payment, due at closing. Discuss the options wuth your lender. If you’re able to put more down, it helps us make a stronger and more attractive offer to sellers, and reduced your monthly payments,
Appraisal — approx $375
Your lender will require an appraisal of the property. This is not the same as the inspection that you request personally. The appraiser is represtening the interest of the lender and making sure that the property is worth the money that is being borrowed on it.
Title, closing and state fees — approx $2-3K
The title company and State of MN will have several costs including a closing fee, title search & exam, title insurance, and recording fees.
Keller Williams administrative fee — $399
Keller Williams, like most brokers, charges the buyer a fee for administrative handling of the transation.