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Prepared for buyers by Beth Green, RE Solutions

Your Financial Commitments

Every home purchase involves four separate financial commitments. Each one arrives at a different point in the process. Here is what to expect.

1

Earnest Money Deposit

Shows the seller you are serious

What it is: Money you place with the contract to show that you intend to buy the home.

When it is paid: It is usually delivered soon after your offer is accepted.

Who holds it: It is held in a protected account by the party named in your contract.

Common mix-upThis is not an extra cost. It is normally credited to you at closing.
2

Home Inspection

Helps you understand the home

What it is: A licensed inspector reviews the home and explains its condition and possible repairs.

When it is paid: It is paid during the inspection period after your offer is accepted.

Who receives it: The inspection company receives the fee for its work and report.

Common mix-upThe fee is usually not refunded, even when you decide not to move forward.
3

Down Payment

Your ownership stake

What it is: The part of the purchase price you pay with your own funds instead of borrowing.

When it is paid: The remaining amount is paid at closing.

Who handles it: Your closing company or attorney applies it to the purchase.

Common mix-upYour earnest money is generally credited toward the funds you need at closing.
4

Closing Costs

The costs of completing the purchase

What they are: Fees, prepaid items, taxes, insurance, and adjustments connected with closing.

When they are paid: They are usually paid at closing with your remaining funds.

Who handles them: Your closing company or attorney sends each amount to the proper party.

Common mix-upClosing costs are separate from the down payment, so you should plan for both.

Your Personalized Estimate

Enter a purchase price and adjust the estimates below.

$
Earnest money1%
Inspection fee$800
Down payment20%
Closing costs1.5%

Earnest money

$3,500

Normally credited at closing

Inspection

$800

Paid to the inspection company

Down payment

$70,000

Earnest money is generally credited

Closing costs

$5,250

Estimate only

These figures are illustrative and prepared as a starting point for our conversation. Your exact numbers will be confirmed with your closing professional and lender. I am here for every question along the way. — Beth