#2 You need cash up front
When you are ready to purchase a home there is going to be some outlay of money, be prepared and have the funds saved up in your bank account now
A) Earnest Money (A “Good Faith” deposit placed on the home that is credited back to the buyer at closing) This could be $500- $1000.
B) Building inspections – As a buyer you have the right to request many types of building inspections, on top of the general complete home inspection there are also more specific inspections you can purchase such as Radon, Mold, Sewer Lateral, Structural, Septic and Well to name a few. These inspections can easily start at $500 or more and are typically paid by the seller at the time of inspection (Typically within 10 days of an accepted contract)
C) Loan expenses will also be incurred as will your down payment, depending upon your loan type you will need an addition 3-5% for a down payment, up to 20% for a convention loan. This brings me back to know your lender and REALTOR® who can help you navigate all the home ownership programs out there to establish if you are eligible for any assistance.
See more in our Buying a home series
How to buy a home -The Inspection
How to buy a home -The Closing