What Do You Actually Pay Before Closing Day?

You found the house. You made the offer. And now someone hands you a list of things you need to pay — before you even get to the closing table. If that moment made your stomach drop a little, you're not alone. A lot of my clients come to me after that moment, confused and wondering if this is all normal.

It is. And I want to walk you through exactly what those upfront costs are, what they're for, and roughly how much you should expect to have ready.

The good news? These costs are smaller than people imagine, and most of them go toward protecting you — not just the lender.

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Earnest Money: Your "I'm Serious" Deposit

Earnest money is the deposit you put down when your offer gets accepted. Think of it as a handshake in cash form — it tells the seller you're genuinely committed, not just browsing.

• Typical amount: 1% to 3% of the purchase price
• On a $300,000 home, that's roughly $3,000 to $9,000
• It's held in escrow by a neutral third party, not the seller

Here's what most people don't realize: this money isn't lost. If the deal closes, it gets applied directly to your down payment or closing costs. If the deal falls through due to a contingency you included in the contract (inspection issues, financing falling through), you typically get it back.

The risk comes if you back out without a valid contingency. That's when you could lose it. So before you wire anything, make sure your contract has the right protections in place — your realtor should help with this.

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Home Inspection: Worth Every Dollar

The inspection usually happens within the first 10 days after your offer is accepted. You hire an independent inspector to walk through the property and report on everything — roof, foundation, plumbing, electrical, HVAC.

• Typical cost: $300 to $500 for a standard single-family home
• Larger homes or older properties can run closer to $600–$700
• You pay this directly to the inspector, usually at the time of the inspection

I always tell my clients: do not skip the inspection to save $400. I've seen inspections catch issues worth tens of thousands of dollars. That's not a scare tactic — that's just what the data shows when you work in this industry long enough.

The inspection protects you. Even in competitive markets where buyers are waiving contingencies, you can still do the inspection — you just decide afterward whether to ask for repairs or walk away.

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The Appraisal: What the Lender Requires

Once you're under contract, your lender orders an appraisal. This is a licensed appraiser's independent opinion of what the home is actually worth — the lender needs this to confirm the loan amount makes sense.

• Typical cost: $500 to $700, sometimes up to $800 in certain markets
• This is usually paid upfront when you apply for the loan or shortly after
• The appraisal is for the lender's protection, but you pay for it

If the appraisal comes in lower than the purchase price, that's when things get interesting. You'll either need to renegotiate with the seller, cover the gap in cash, or walk away. It's not the most common outcome, but it happens — and it's better to know before closing than after.

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A Quick Real-World Example

Let's say you're buying a $280,000 home:

Most of that earnest money comes back to you at closing, applied to your other costs. So the money you're truly "spending" before closing day is closer to $950 in this example.

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Ready to Know Your Full Picture?

These three costs — earnest money, inspection, and appraisal — are the main things you'll pay before closing day. They're manageable, they make sense, and now you know what to expect.

If you want to sit down and map out the full cost of buying a home from start to finish, reach out to me directly. No pressure, no sales pitch — just a real conversation so you can move forward with confidence.