The financing you chose
will determine the amount of money needed
to purchase your home. Several
mortgage programs allow you to purchase with little or no money down.
However, in most purchases you can expect to incur the following costs upfront
regardless of your mortgage.
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Earnest
Money Deposit
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An
earnest money deposit is used to demonstrate to the seller a sincere intent to
purchase the home. As dictated by the State of Michigan, this money is
held in
an escrow account until the
closing.
Your
earnest money will be returned to you
if:
-
Your
offer is not accepted and your terms cannot be negotiated.
-
The
inspection results are unsatisfactory and cannot be worked
out
between parties.
-
The
appraised value is below the agreed sales price and terms are not
reached.
-
Your
financing is not approved.
Otherwise,
you will receive credit for your deposit at the closing.
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Property
Inspection Fee
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It
is highly recommended that you hire a qualified inspector that will inspect the property entirely
and typically will provide you with a
full written report on the condition
of the property. This fee is typically between $200
and $300.
|
|
Appraisal
Fee
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This
fee is charged by the lender, who then hires a licensed
appraiser to determine the value of the home
as compared to similar properties that have recently sold. This fee is usually
between $250 and $300.
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Credit
Report Fee
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This
cost is also collected by your lender at the time of application
and is used to obtain a full mortgage credit report
which is an extensive search of all your credit history.
The fee for this is typically between $50 and $75.
Your
lender will discuss any additional mortgage costs with you at the time of
application.
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