Also referred to as earnest money, is money that the buyer wires to the title attorney at the beginning of the transaction. This money is then held in an account during the process, and will go towards the closing cost/down payment on closing day. The purpose of this money is to show the seller’s that the buyer plans to go through with the transaction.

Depending on which loan type you go with and if you qualify for down payment assistance, you can have a down payment as low as 0-3.5%

Average around 3% of the purchase price of the home

If after doing the inspection, you decide that you don’t want to purchase the home, you have 10 days from the date the offer was accepted to cancel and receive your binder deposit back. After that, you can cancel at any time, but the seller will keep your binder/earnest money.

An appraisal is when the lender hires an appraiser to determine the current market value of the property. The appraiser does this by comparing the property to similar properties that have recently sold in the area. The lender will not loan for more than the appraised value.

The appraisal contingency says that if the appraised value is determined to me lower than the contract price (this is a rare occurrence), the buyer has the opportunity to back out of the transaction. Other options are: the seller can lower the price, or the buyer can pay cash for the difference.

Around $500-600

This varies depending on the size of the home and what types of inspections are needed. You can expect to pay between $400-700 for an average home inspection.

As a buyer, you do not pay real estate agent commissions. The agent on each side of the transaction typically is paid 2.5-3% of the purchase price, but both agents are paid by the seller.