Up Front Costs

Erin Primrose | Real Estate Broker | Urban Properties Group, LLC | 424 NW 11th Ave | Portland, OR | 97209
503.317-8111 | [email protected] | www.ErinSellsPortland.com
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EnnNrst MoNrv
This is the iniual deposit that the
homebuyer puts down on the home
when submimng an offer. The purpose
is to convince the seller that the buyer
"earnestly" intends to purchase the
home. The earnest money is
refundable if the buyer is not sausfied
with the property upon receipt of the
inspecuon, the bank is unwilling to lend
on the property or the buyer is unable
to qualify for financing. If the purchase
goes through, the earnest money will
be applied to the down payment and
closing costs.

DowN PnvmrNt
Many homebuyers rely on a mortgage from a financial insutuuon for their home purchase. Lenders
feel more secure if you have money invested in the house, therefore requiring you to contribute
some poruon of your own funds in the form of a down payment. Down payment amounts will vary
from 3.5% to 20% of the loan. For example, a 5% down payment on a $300,000 home will be
$15,000.

CtosìNc Costs
In addiuon to the down payment, prepare to pay a number of addiuonal up‐front costs incurred in
buying a home. Collecuvely called "closing costs", these expenses range from 2% to 4% of the
mortgage.

SrtttìNc‐IN Costs
It’s important to consider what it will cost to move in to a new home. If the home you need needs
immediate repairs or major appliances, it is smart to allocate that upfront. A common mistake that
homebuyers make is spending all of their money gemng into their home. Be aware of your comfort
level when it comes to “cushion” finances.
UP-FRONT COSTS