3 Checks You’ll Need To Write Prior To Closing On Your First Knoxville Home
The process of buying your first Knoxville home involves writing a lot of checks. For many first time buyers, this can be a daunting concept. You’re already writing a large check for the down payment, it can feel scary to write additional checks during the process.
As a buyer, it’s important that you’re prepared for the expenses that involved with buying a home. In addition to your down payment, there are 3 other checks you’ll need to write prior to closing on your first Knoxville home. In this post, we’ll cover what additional expenses you should be prepared for.
The first check you will write during the process of buying your home is your earnest money. When you make an offer, you’ll put down earnest money to show a seller that you’re serious about buying the home. Your earnest money is what you stand to lose if you back out of a deal for no reason.
The amount of earnest money that you opt to put down on a home varies on the price range and how much you’re comfortable with putting down. Oftentimes, the range is between $500 to $1000 for first-time buyers.
At closing, you will be credited back for the earnest money that you put down. But, if you walk away from the house for any reason other than was is outlined in the contract, you stand to lose your earnest money.
A home inspection is another check you should prepared to write when you buy your first home. While you are not required to get a home inspection, it is smart financial decision to get one to ensure you know what you’re buying.
A home inspector typically either gets paid before the inspection or right after the inspection. The cost of a home inspection typically costs anywhere from $350 to $500, depending on the type of the inspection you opt to do.
A home inspection is worthwhile investment when you buy a home. A home inspector will inspect a home top to bottom to identify any major issues within a home. Based on that information, you can either request repairs from the seller or decide to walk away. It’s one of the most worthwhile items you will pay for when you buy a home because it gives you a full picture of what you’re buying.
Appraisal Or Credit Report
Finally, many lenders will require you to pay for your appraisal upfront when you officially put in a loan application. A vast majority of loans require an appraisal be done to determine the value of a home to ensure that a lender isn’t lending out too much money.
Typically, an appraisal will run anywhere from $300 to $500. While the cost of an appraisal can seem like a hefty fee, it is an item that is necessary for most mortgage lenders. If a home doesn’t appraise or you decide to walk away from a transaction, you will not receive a refund for what you paid for the appraisal.
Bottom Line: Be Prepared
Every buyer knows that buying a home is an expense. It’s important to know what fees to expect along the way, that way you’re not shocked during the process. Be sure to have that extra money tucked away, in addition to your down payment.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first time buyers, you may not be sure where to start. If there is anything we can do to help you in your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.