01
EARNEST MONEY IS PART OF YOUR UPFRONT CASH PLAN
Earnest money is a deposit submitted with an accepted purchase contract to show that the buyer intends to complete the transaction. It is generally applied according to the contract at closing, so it is not automatically an added cost on top of the purchase price. The amount, timing, refund conditions, and possible risk of forfeiture depend on the agreement. Before making an offer, understand when the deposit is due and how each contingency affects it.
02
INSPECTIONS CAN INCLUDE MORE THAN ONE APPOINTMENT
A general home inspection is often the starting point, but a buyer may also consider separate evaluations for the roof, heating and cooling equipment, sewer or septic system, pool, pest activity, or other property-specific concerns. Which inspections make sense will depend on the home and your contract. Ask for pricing before scheduling, and decide which information you need to evaluate the property confidently.
03
THE APPRAISAL IS DIFFERENT FROM THE HOME INSPECTION
When financing a purchase, the lender may require an appraisal to help evaluate the property’s value for the loan. The appraisal does not replace a buyer’s inspection. One is primarily connected to the lender’s collateral decision, while the other helps the buyer understand the home’s condition. Confirm the appraisal charge, payment timing, and any reinspection fees with your lender.
04
LENDER CHARGES CAN CHANGE THE COST OF THE SAME LOAN AMOUNT
Loan expenses can include origination, underwriting, processing, credit-report, rate-lock, and other lender-related charges. Discount points may also be offered in exchange for a lower interest rate. Compare the complete Loan Estimate, not only the advertised rate or projected principal-and-interest payment. The Consumer Financial Protection Bureau recommends comparing Loan Estimates from multiple lenders for the same type of loan.
05
TITLE, ESCROW, RECORDING, AND OTHER CLOSING SERVICES ADD TO CASH TO CLOSE
A real estate purchase can involve title work, escrow or settlement services, recording charges, and additional transaction fees. Who pays a particular item can depend on the contract, lender requirements, and local practice. Review each line of the Loan Estimate and ask which services you may shop for. Your final Closing Disclosure should then be compared with the most recent estimate before closing.
06
PREPAID TAXES, INSURANCE, AND ESCROW DEPOSITS CAN BE SIGNIFICANT
Your closing funds may include homeowners insurance premiums, prepaid interest, property-tax adjustments, and initial deposits for an escrow account. These items are different from lender fees, but they still affect the amount needed to close. If a property has a homeowners association, review its dues, transfer-related charges, assessments, and required payments. Obtain property-specific estimates rather than relying on a generic rule of thumb.
07
MOVING AND HOME SETUP DESERVE THEIR OWN BUDGET
Moving trucks, professional movers, packing materials, utility deposits, internet setup, locks, window coverings, appliances, and basic furnishings can create a second wave of expenses. The total will vary widely depending on the distance of the move and what the home already includes. A separate moving and setup allowance can keep these costs from competing with money reserved for closing.
08
PHOENIX HOMES CAN BRING PROPERTY-SPECIFIC MAINTENANCE PRIORITIES
In the Phoenix area, a buyer may want to understand the age and condition of the air-conditioning system, roof, pool equipment, irrigation, exterior finishes, and desert landscaping. The point is not to assume that every home needs immediate work. It is to identify which major systems belong in your first-year plan. Inspection findings, seller disclosures, service records, and estimates from qualified professionals can help shape that reserve.
09
KEEP A RESERVE AFTER THE TRANSACTION CLOSES
Using every available dollar for the down payment and closing can leave little flexibility for an unexpected repair or change in monthly expenses. Consider how much cash you want to retain after closing, then discuss the tradeoffs among down payment, loan structure, monthly payment, and reserves with your lender or financial professional. The right balance depends on your finances, the property, and your comfort level.