What Costs Are Involved in Purchasing? I’ve prepared this information to help you understand what is financially involved in purchasing a home so that you can plan ahead and be ready. These figures are closely estimated and are typical fees associated. Not all fees are mandatory. Check with your lender regarding loan application fees, loan origination fees and homeowner insurance requirements since this will be a large part of your costs. These are not required in all cases, but to avoid surprises, they should be expected.   Description When Collected Cost Loan Application Fee Usually a fee is collected in order to begin processing your loan and covering the costs associated with your credit report and the lender appraisal of the property. At loan application, once an offer is accepted. $300-$400 General Home Inspection One-time fee paid to your inspector for independent service. At time of inspection $250-$375 Earnest Money Typically 1% of the offer price or $1000. This is not required in all cases, but helps strengthen your offer and is applied toward your financing or refunded at closing. 4 Days after offer is accepted. $500-$1000 (New Construction $5000) Homeowner Insurance Lenders require proof of homeowner insurance on the property, paid in advance for one full year, in most cases. 1-2 weeks prior to closing. $400-$500 Closing Costs Title search, title insurance, lender and recording fees. Before close, at signing. $1500-$2800 Administrative Fee Real Estate Administrative Fee paid at closing for fax, postage documents and legal fees. Before close, at signing. $250