There are many different fees associated with buying a home, so let’s break down what you need: 🏠

The Down Payment: 💸 The amount of a down payment can be as little as 3.5%, 5% or 10% depending on what type of loan you qualify for. It is important to speak with a Lender and find out what option is right for you. I have worked with many Buyers who thought they couldn’t buy a home because they didn’t have the traditional 20% down and they were pleasantly surprised when they found out that wasn’t true!

The Good Faith Deposit: 💼 These are funds you will need to have available when you open escrow. It is typically 3% of the purchase price in Los Angeles and will be applied towards your down payment at the close of escrow.

The Inspections: 🔍 When you buy a home, you have the option of inspecting anything you like as long as you do not cause damage to the property during the inspections. Buyers often choose to have an overall home inspection and may also choose to have a termite inspection, sewage line inspection, and/or mold inspection, just to name a few. These inspections cost money, so you’ll need to have the money available to pay for them once you open escrow.

The Appraisal: 📈 These are required when you purchase a home with a loan. The Appraiser will be determining the value of the home and reporting this information to the bank. The appraised value will determine the amount the bank is willing to loan for the purchase of the home.

Closing Costs: 📜 These are costs associated with the loan program available to you. These fees include title, transfer fees, underwriting fees, etc. Depending on the purchase price of the home and the loan program itself, the fees can range anywhere from 2% to 6%.

Escrow Fees: 📋 Most real estate sales involve an escrow company who is an independent third party that manages the funds involved in the transferring of real estate. These fees are not fixed or determined by the state of California. Generally, the fees are roughly .20% (or $2.00) per $1000 of the property value plus $250.00. So the total for a million-dollar property is approximately $2,250.00 per side.

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