What to Expect When Buying a Home
There’s nothing worse than surprise costs at the end of the day when purchasing your first home, so here are some expenses to look out for when buying. First make sure you decide with the sellers what expenses they will cover. This could include anything from home inspections to security deposits for utilities, like water and electric which can be a couple hundred dollars if you’re not from the area. Another lesser known cost to be aware of is the earnest money deposit. Essentially this is a deposit you give to the seller that is held just in case you default on your loan. You’ll receive your deposit back at closing and if there was also a security deposit put down for the home you’ll receive the earnest money deposit in the form of a credit. In addition to the costs listed above, you will, generally, need to get a standard appraisal done on your home. In comes cases your lender will cover the expense initially and collect the balance at closing. The last major expense to look out for is the cost of the home inspection. Usually a standard home inspection will cover everything you need, however you can add on other things to the inspection, like radon. In the Lynchburg area the standard home inspection is between $300 and $400 depending on who you go with.