Buying a home is often the largest financial transaction in a person’s lifetime. Even if you have just started looking you probably have some idea for what the property will cost, but what about the other fees associated with buying a house?
To help cut through the confusion here is a breakdown of some of those costs:
- Earnest Money - Part of your offer to purchase, this shows a seller that you are serious about buying the property. Once under contract if you back out of the purchase for a reason that is not covered as a contingency in the purchase contract, you generally forfeit your earnest money. At closing this counts towards your downpayment, and you pay the balance.