Frequently Asked Questions

What do I need up front to buy a home?
-Earnest money, home inspection fee, & appraisal fee.
-The closing costs and down payment, if needed, will be required on closing day.

What is Earnest money/ Trust money?
– Earnest money, now called trust money, is required when you make an offer on a house and it’s accepted. It’s due, most commonly within the first 7 days of an accepted offer. It goes towards your down payment and or bottom line at closing. It is held and deposited at the beginning of the transaction to show in good faith that, you are interested enough in a home to put money down on it.
– Common amounts are $1,000 for a home with a sales price of $250,000 and under. $2,500 for a home up to $350,000
– Higher price points depend on the loan and the sellers.

Will my earnest money/Trust money actually be deposited?
– Yes, the earnest money, now called trust money, is deposited and held, per the contract at the real estate firm or title company. It goes towards the buyer’s proceeds at closing. It’s generally counted as part of the down payment.
(Example: You are putting $9,000 down, and put $2,000 down for trust money. You now owe $7,000 down payment on closing day.)
*NOTE: If you decide against the home or financing falls thru, during the financing and/or inspection period, you do get your Trust money back. It’s YOUR money. It can be kept, under special circumstances, if you default on the contract, but know that up front, making an offer and deciding it’s more work than you want to do or it’s gonna cost more than you anticipated doesn’t mean the sellers get your trust money.

How much is a home inspection?
– Home inspections range from $250-$700 depending on the size of the home and what details you have tested. It costs extra to test for radon, mold, sometimes roof and septic, depending on who you use.
– In general, expect about $400 for a home around 2000 sq ft.

How long does closing take?
– Closing is typically 30-45 days from when you have an accepted offer on a property.

What are normal costs needed to buy a house?
– Depending on the loan type you get, there are multiple options. There are loans that require 3-5% down payment as a minimum, depending on your credit score.
– Other than the down payment, you will need lender closing costs. These are the costs that pay for the loan origination if you buy down your interest rate and the general fees to make the loan happen.
– In general, the closing costs are approximately 3% of the sales price. (Example: Closing costs for a $200,000 house would be $6,000 dollars)
-Keep in mind that there some loans, such as first time home buyer loans (if you qualify) may pay your closing costs and/or down payment. Talking to a lender would help you know if you qualify.

What’s the title company for and what does that cost?
-The title company is here to protect you! They run a title search and process the transaction. The title company will make sure you are buying a home that doesn’t have any existing liens against it or the current seller.
– You don’t want to buy a home that has liens that fall onto your plate. That’s why a title company is ALWAYS a good idea. The title company usually charges $450-$500 per transaction. Many times this is paid by the seller’s side here in Middle Tennessee.


How Can I Help You?

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I’m Andra Brewer. Please explore and enjoy the resources on my web site, and connect with me if I can help you in any way. I am in real estate because I love serving people, and helping them through one of the biggest, most important decisions in their lives. I would love to be your Realtor!

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Phone: 615.585.2638

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