When Do I Pay That? The Money Flow when Buying a House

Out of all of the major decisions and events that happen when you buy a home, there’s always one large concern: MONEY.

Let’s clarify when you’ll need it, and how much you’ll need when you are buying a home.

The first check you’ll write will be an Earnest money check. You can read more about Earnest money in this linked article. The amount you want to offer is up to you, but I’m going to recommend you put down 1-2% of the sales price. This check gets cashed as soon as you and the Seller can agree on the contract, before inspections begin. This money will be credited towards your down payment and closing costs.

The next check is probably to your lender. As soon as you and the Seller agree, you have to start your loan processing. The lender may want you to pay for the appraisal or pay a processing fee up front. This money is cashed more or less immediately.

Your home inspector and termite inspector want to be paid at the time of their inspections. My termite guy is around $40 for the inspection, and my favorite home inspector is somewhere between $0.12 and $0.15 per square foot, depending on the age of the house. He’s got a $200 minimum, and charges an extra $50 if there is a pool on the site that you want inspected. It’s a good price for an excellent inspection.

Lastly, you’ll bring in a cashiers check to cover your down payment and closing costs. I can’t give you rough guides for this one, it will depend almost entirely on the details of your financing. We’ll be coming in to sign your loan documents three days before the scheduled closing, and you need to bring in your check around that time. Most people bring a check to the signing appointment, but it may be possible to bring in that check a day or two later. It will depend on your specific contract and on what day you are signing.

If you’re thinking about Buying a home, I’m happy to walk you through the process. Let’s set an appointment to discuss, and to see if we’re a good fit to work together. No pressure, I promise!