What buying actually costs you
Every dollar that leaves your pocket between the offer and the keys. In order, no fine print.
Money · 14 points
Who it’s for
For the buyer who’s got the down payment and wants to know what else is coming.
What’s on the list
- 1
Good-faith deposit (escrow deposit): you hand it over when the contract gets signed, and it applies to your purchase. Not an extra cost. Just your money, early.
- 2
Down payment: the piece you’re not financing. Depends on the program — FHA from 3.5% with a 580 score or higher (HUD), VA can go to 0% if you qualify (VA), and conventional programs like HomeReady start at 3% (Fannie Mae).
Fannie Mae — HomeReady Mortgage - 3
Appraisal: the lender orders it to protect their loan, and you’re the one paying for it.
- 4
Home inspection: you hire it, and you pay for it even if you end up walking. Best money you’ll spend in this whole thing.
- 5
Termite and pest report, whenever the lender or the contract calls for it.
- 6
Loan charges: origination, processing, underwriting, points. They’re all itemized on your Loan Estimate, which the lender has to hand you within 3 business days of your application, per the CFPB.
CFPB — Loan Estimate - 7
Title search plus title insurance — one policy for the lender, and one for you as the owner if you buy it.
- 8
Closing agent fees, the survey if you need one, and recording everything with the county.
- 9
Documentary stamp tax and other transfer taxes. Florida sets the rates and Miami-Dade has its own rule, so check the Florida Department of Revenue before you put a number on it.
Florida Department of Revenue — Documentary stamp tax - 10
Prorations: property taxes and the month’s association dues get split between seller and buyer based on your exact closing date.
- 11
First year of homeowner’s insurance, plus the flood policy if you need one. Almost always paid up front, closing day.
- 12
Escrow reserves: the lender usually collects a few months of taxes and insurance up front to get your escrow account going.
- 13
Building costs that never touch the loan: condo application fee, move-in deposit, elevator reservation.
- 14
And the stuff nobody budgets: movers, new locks, turning on utilities, and that first round of things every home somehow needs.
For the bigger picture
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