Keep in mind you need to have money available PRIOR to the purchase and closing of your home!
Earnest Money Deposit:
An earnest money deposit is used to show a seller you are sincerely
interested in the property. This money is held by the broker in accordance
with the laws of the State of Michigan. Your earnest money will be returned to you if:
- The offer is not accepted and you do not come to terms with the seller, or
- The inspection report results can not be worked out between parties, or
- The appraisal comes in below agreed upon sales price and terms are not reached.
You will receive credit for your deposit at the closing.
Property Inspection Fee:
This is for a full written report on the property. A qualified inspector will
inspect the property from the roof to the foundation. Expect to spend
approximately 2-3 hours with the inspector at the home. The cost for this
is usually between $200 and $300.
Appraisal Fee:
This money is paid to the lender who then pays the
appraiser to determine the "appraised value" of the property.
This fee is typically between $250 and $300.
Credit Report Fee:
This is a fee that you will pay to your lender to order your full credit
report. A mortgage credit report is an extensive search of all your credit
history. The fee for this is about $175.
Note:
Your offer is contingent upon your approval of the property inspection, and the
appraised value. If the inspection results can not be worked out with the seller, you
receive a refund. The appraiser is hired to be sure the "value" is correct and you are not
paying more than market value for your new home. They are not inspectors. They do
look for any major problems with the home; typically obvious items only. In addition, the
fees listed here are typically called "Up Front" costs. You will incur fees in addition to
these in order to close on your home.
Lookin' to SAVE? Call Dave!
1-586-286-3283 or 1-800-615-0550
©Copyright 2010 - Dave Elya
No one may reproduce or copy any information contained herein for use on another website or other promotional materials without specific written authorization from Dave Elya. Anyone who chooses to violate this will be subject to legal action for copyright infringement.