5 Upfront Fees Houston First Time Home Buyers Must Budget For

Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH). Before you begin your home search, in addition to applying for a mortgage, you should make sure you have all the necessary funds you will need to finance your first home purchase. Here are 5 items you will need to pay upfront. This means you will need to have the money on hand and ready to go.

1. Earnest Money - Earnest money amount will vary for each property and builder. Expect to pay between 1-10% of the home price.

2. Option Fee - Option fee will also vary from property to property. Expect to pay between $100-$500. However, don’t be surprise if it’s a bit more.

3. Inspection Fee - Although fees will vary, expect to pay between $250-$750.

4. Pest Inspection Fee - This is the cost of having the home inspected for termites, infestations and insects. Although cost will vary, expect to pay above $80.

5. Appraisal Fee - Is the cost of having a professional appraiser estimate the market value of the home you are in the process of buying. This is how the lender ensure that the home is worth the price it is being sold for. Cost will vary. Expect to pay above $500. Although it can be a part of the closing cost, some lenders will ask you for a credit card for which to charge the amount.

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana