09/16/2026
🏠 Think you only need money at the closing table to buy your first home? WRONG. 👀
There are several costs you need to be prepared for before closing. Let’s break them down:
💰 Earnest Money
This is your good faith deposit to show the seller you’re serious. It’s typically around 1% of the purchase price.
🔑 Option Fee
This is what you pay for your option period, giving you time to do your due diligence and decide whether you want to move forward. If you close, both the earnest money and option fee are generally credited toward your purchase. If you terminate during the option period, your earnest money is typically refundable, while the seller keeps the option fee.
🔎 Inspection
One of the MOST important steps! You want to find the problems before you buy the house, not after!
Pricing varies depending on the size and type of property and the inspections you choose.
📊 Appraisal
This is primarily for your lender, not the seller. The lender wants to make sure the property is worth what they’re lending you. If you’re purchasing cash, you generally won’t have a lender required appraisal. Appraisals can cost $500+, depending on the property and market.
Bottom line:
Before you start house hunting, have a detailed conversation with your Realtor and lender so you know exactly how much cash you’ll need, not just for closing, but throughout the entire process.
Save this for when you’re ready to buy! 🏡
RealEstateTips
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