3 Home Buyer Out of Pocket Costs
Have you ever wondered besides what you have to bring to the closing table as a buyer, what any additional out of pocket costs (IE costs that are paid at the time of service as opposed to being paid at closing) may be? In this article, we’ll dive into the different out of pocket costs associated with buying a home!
Your Home Inspection
In Illinois, after your offer is accepted, you have the opportunity to have a 3rd party home inspector come in and inspect your new home to look for anything that may be of a concern.
A home inspection is paid for at the time of service and is typically between $400-$600 depending on the size of the property.Your Appraisal Fee
An appraisal is a formal assessment of the fair market value of your new home conducted by a certified appraiser. The appraisal is automatically scheduled by your lender after an offer is accepted on a home, so it is not something you have to keep track of. The majority of lenders (aka the entity who is providing the home loan to you), require the appraisal fee of your new home to be paid at the time of service, however this is not always the case. In some circumstances, the appraisal fee is added as a part of your closing costs. You’ll want to connect with your Realtor or confirm with your lender how and when the appraisal fee is paid. An appraisal is typically between $400 - $600.
Home Maintenance and Repairs
Unless otherwise negotiated during the inspection period, home maintenance and repairs are considered out of pocket costs for a home buyers. Unlike renting, as a homeowner, it is your responsibility for any upkeep and repair costs of your new home.
