How Much Cash to Buy a Carmel | Fishers HouseHow Much Cash Do You Need to Buy a House in Carmel or Fishers Indiana? That depends; mostly on the price of the house, how much downpayment you plan to make and what type of loan you will be using. Here are some guidelines to help you figure out the expenses of buying a home and how much cash you will need to buy a house in Carmel Indiana.

Earnest money

Earnest money is a deposit submitted with your purchase offer to show that the offer is serious. Earnest money is generally applied to the purchase price of the home if the sale is closed, returned if your offer is rejected, and forfeited if you decide not to complete the purchase.

$$$ needed: Earnest money is typically a minimum of 1% of the purchase price of the home. It can be more, though. In markets where homes are getting multiple offers, buyers may decide to submit more earnest money in order to make their offer more attractive than others. Earnest money can be paid with a personal check that is held in escrow until closing.

Down Payment

Down payment is a cash payment made toward the purchase price of a property.  The greater your down payment, the less money you will be financing and the less your monthly mortgage payment will be.

$$$ needed: The amount of down payment varies according to the type of loan you are using and how much cash you are willing or able to invest in a property. Some loans require no down payment; some as much as 20% of the purchase price of the home. Down payment is collected at closing.

Home Inspection

A home inspection is an examination of the construction, condition and internal systems of a home prior to purchase. A satisfactory home inspection may be a condition of the purchase of the home. Yes, you can waive a home inspection, but it is never recommended.

$$$ needed: the cost of a home inspection varies according to the size of the home, but is usually between $300—$600. The home inspection fee is paid at time of service.

Closing Costs

Closing costs are expenses separate from the price of the property that buyers are expected to pay at closing. Closing costs usually include: a loan origination fee, appraisal, title examination and insurance, survey, and prepaid items such as escrow deposits for taxes and insurance. Buyers can ask the seller to contribute up to 3% of the purchase price toward closing costs with a conventional mortgage and up to 6% with an FHA mortgage.

$$$ needed:  Average closing costs are usually about 2% to 5% of the purchase price of a home, but vary by lender.  Many of these fees can be rolled back into your mortgage loan, which means that you will pay them as part of your mortgage payment rather than as cash at closing.

REALTOR Fees

REALTOR fees are the commission paid to a real estate agent for his or her services.

$$$ needed: None. Realtor fees are paid by the seller at closing!

Now that you know approximately how much cash you will need to buy a house in Carmel or Fishers Indiana, you can start your home search! See all homes for sale in Carmel and Fishers Indiana.