Common Costs Associated with Buying a Home


Whether you are getting a loan or paying cash, these are just a few of the more common costs associated with a home purchase in the Bluegrass. **  

Earnest Money

When you are ready to make an offer on a house, you will be asked about Earnest Money or Good Faith Money. Earnest Money can be just about any amount, but sellers will take your offer more seriously if you can put down at least $500 to $1000. Your earnest money will be deposited in an escrow account and held until the day of closing. On the day of closing, you will get that money back--briefly. It is usually applied toward your down payment.  

Home Inspection

Most Buyers choose to hire a professional Home Inspector to do an inspection of the home that they are purchasing. Home inspections generally cost between $250 and $450 depending on the size of the home and the inspector. You can request a radon test for an additional fee. The home inspection is paid out of pocket and not included as part of your home loan.

Some Buyers also choose to hire inspectors for specific aspects of the property not included in a general home inspection, such as a septic inspection or pool inspection.

Wood Destroying Insect Infestation Inspection

In addition to a general home inspection, Buyers often choose to hire a professional to look for wood destroying insects. This inspector often visits the home at the same time as the Home Inspector. This inspection usually costs $50-$85. 

Down Payment

Most lenders require at least 3% of the purchase price of the home as a down payment. There are lots of different loan products. Some require more, some require less (as little as 1%). Talk to your loan officer to get the particulars.


**Mortgages have additional closing costs--appraisal fee, property tax, loan origination fees, home insurance, filing fees, title search, etc. Your lender can tell you more.