Upfront Expenses for Inspections & Appraisals

Before you close on a house, there are some "out of pocket" expenses that you'll need to be prepared to pay. Your lender may collect a fee from you for the loan application and your home appraisal at the time you apply for a loan. Also, once you are under contract — it is always a good idea to hire a qualified home inspector to make you aware of any issues with the home that may require repair. These fees for appraisals and inspections are described below.

Appraisal

An appraisal is an assessment of the home's value that assures the lender that the home is worth as much as you're borrowing and spending to purchase it. Keep in mind that the majority of lenders collect the appraisal fee from you upfront at the time you apply for your loan.

You do not have control over which appraiser is selected to appraise your home. The appraisal has to be performed by a neutral party that is randomly selected out of a rotation of appraisers that their system has identified as delivering accurate, objective and timely appraisals. If you'd like to know more, here's a video all about appraisals.

Typical cost for an appraisal: $350–$500 depending on home and local market

Home Inspection

Before you close the deal on your home, you should have it inspected by a professional. This will protect you from buying a home with serious problems that require expensive repairs.

You can choose whatever home inspector you would like. If you don't have a trusted inspector, ask your Agent who they recommend. He or she most likely has trusted inspectors and would be happy to refer to you. If you'd like to know more, here's a video all about home inspections.

Typical cost to hire inspector: $350–$500 (Cost does depend on size of home inspected)

Want more advice about all things home — including homebuying or selling advice? Nestiny is a great place for homebuyer education and to help you gauge how ready you are to buy a home. Journey Homeward allows you to enter all your wants and needs while the True Affordability Tool will break down your budget, showing what you can comfortably afford. You will also receive a Ready Report that will give you a vital head start in the home buying journey, saving you valuable time and money.

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