Initial expenses associated with buying a home are earnest money (.5-1%) and home inspection ($500 and up). If you bring any contractors to check specific items flagged in the home inspection you’ll be responsible for covering their fee also. The down  payment can range between 0-5% depending on the loan type.  Closing fees range from 1-2% of the price of the home. Depending on the market and location, closing costs could be paid by the seller. 

Earnest money is an initial down payment that shows you’re serious about purchasing. You can think of it as a good faith estimate. There is no specific amount required, but as a general rule I recommend anywhere between .5 and 1% depending of the price of the home. This amount is held in escrow and is applied to your down payment and/or any fees you’ll owe at closing. 

This depends on the situation but I can give you some ideas. From the time you start shopping to the time you close, it’s usually probably around 3 months. From the time your offer is accepted to the time you close, it is anywhere from 4-6 weeks. These are estimates and can vary, especially if you are selling and buying at the same time. 

I recommend we meet and get you prequalified 6-12 months prior to the time you want to be in in your new home. You will then have an idea of loan options, budget range, monthly payment, and approximately how much money you’ll need to have available at closing. Once you have this information and feel prepared, I recommend we start touring homes 3-4 months before the end of your lease. Keep in mind that you won’t have a house payment for 6-8 weeks after you close on your new home. This means you could potentially move in while you pay your last month of rent. If you’re cutting it close on time, you can ask your landlord to extend your lease on a month-to-month basis. If a lease extension isn’t possible, living with family/friends short term, or moving into mid-term rental could be an option as a last resort. However, I try to avoid this for my clients as much as possible. No one wants to move twice! Bottom line, the sooner you start, the sooner you can make a plan and the less stressful it should be.  It’s important for you to think of these scenarios and be prepared depending on your situation. 

As a buyer in Utah, using a realtor does not incur a cost for you- when you buy a home from the MLS. Homes on the multiple listing service already have negotiated realtor fees built in. If you decide to buy a home off market, such as a for sale by owner, and you want agent representation, my fee can be negotiated with the seller and depending on the case be included in the purchase price. While it might be tempting to “save” some money and fly solo, I wouldn’t recommend it, especially in a for sale by owner situation where neither party would have representation. This is likely the largest purchase you’ll ever make and considering the contracts you’ll be signing are legally binding, it’s in your best interest to pass the liability on to someone who is experienced and understands the process.