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First-Time Home Buyers: The #1 Question To Ask Your Realtor

Eva Swersey

Updated: Jun 3, 2024


First-Time Home Buyers: The #1 Question You Should Ask Your Realtor

Stepping into the world of homeownership for the first time? It's a thrilling journey but can come with its fair share of questions. Most first-time buyers focus on the basics: location, price, and how to finance their dream home.


However, there's one essential question that often slips through the cracks:

How much will it actually cost to buy a new home? 

It's not just about the sticker price. The real cost of buying a home includes more than the down payment and monthly mortgage.


Here’s a breakdown of some costs you might not have thought about:

  • Property Taxes: This is based on your home’s value and varies by location. It’s an annual cost that can significantly impact your budget.

  • Homeowners Insurance: This covers your home against various risks. The cost depends on your home’s size, location, and your coverage choices.

  • Appraisal Fees: During the mortgage process, lenders need to confirm the home's value. The appraisal fee can vary but is a critical part of securing your loan (often included in closing costs).

  • Home Inspections: Before you sign on the dotted line, a professional home inspection is key. It helps unearth any hidden issues. The cost? It varies based on property size and location.

  • HOA and Condo Fees: If you’re eyeing a place in a planned community or condo, remember the monthly or annual fees for upkeep and amenities.

  • Earnest Money Deposit (EMD): This shows you’re serious about the purchase. In Virginia, it’s 1-3% of the home’s purchase price, secured in an escrow account shortly after the contract is ratified. And remember, it goes towards your down payment at settlement.

  • Downpayment: This isn’t the total cost of the home but a part of it. Depending on your loan and finances, this could range from 3% to 20% of the home's value. And for veterans, VA loans offer a 0% down payment option.

  • Closing Costs: In Virginia, expect these to be between 2-5% of your loan amount. For a $200,000 mortgage, it averages around $3,425. This includes both lender and third-party fees, like loan origination, appraisal, survey fees, title insurance, and taxes.

Need help determining what it will actually cost to purchase your new home? I’d love to guide you through the process! Schedule a complimentary 30-minute chat, and I’ll answer any questions you have about the process! 











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Eva Swersey of Compass is a real estate agent affiliated with Compass. Compass is a licensed real estate broker under the name 'compass real estate' in the District of Columbia and under the name "Compass" in Virginia and Maryland and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.

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