The major portion of up-front expenses is the earnest money deposit binder you make at the time of the purchase offer to bind your contract, the remaining cash down payment you make at closing, and can also include expenses such as:
Inspections – Lenders may require inspections, and you can make your purchase offer contingent based on satisfactory completion of some other inspections such as structural, water quality tests, septic, termite, roof, foundation, and radon tests. You and the seller can negotiate these inspection fees.
Owner's Title Insurance – You may want to purchase title insurance in case of unforeseen problems occur which may leave you owing a mortgage on a property you longer own or perhaps someone trys to stake claim to ownership of your new property. A thorough title search ensures a clear title however liens can be missed or filed within short or unexpected windows after searches and before transfers or filings. Owner's Title Insurance can provide coverage. Lender's require this coverage for themselves through their Lender's Title Policy. Your title Company can provide you answers to the costs and benefits of this kind of coverage.
Appraisal Fees – You may want to hire your own indepedent Appraiser- ideally before you sign a purchase offer. Most Appraisers will do a desktop review of any appraisal you provide at reduced costs in lieu of completing a full appraisal inspection.
Moving Expenses – If you are changing jobs, your new employer may pay for your relocation, otherwise you must figure in the moving costs such as truck rentals, professional movers, cash for utility deposits like telephone, cable, electricity, etc.
Repair Expenses: Example: Your purchase offer contract has a clause making the purchase contingent on a satisfactory structural inspection, and it’s determined that the house needs a new roof. You can negotiate to have the seller arrange for the work to be done before closing however, this will likely delay the closing date. In addition you may have to agree to a higher price for house, or to pay some of the new roof repair expenses. It may be that you and the seller agree to split the cost using estimates from a contractor of your choice. Or perhaps the seller may be willing to reduce the sale price of the house. In any case unless a new roof is completed prior to closing, cash will be needed for the new roof in the near future.