Buying A House - Fees When

: Their bank required an appraisal to confirm the house was actually worth $400,000. This cost them another $350–$1,000 . The "Lender & Legal" Fees

: To show they were serious, they put down about 1% to 3% of the purchase price ($4,000–$12,000) into an Escrow Account , which would eventually count toward their down payment .

: The lender charged a fee to process and "underwrite" their mortgage application, often starting at 0.5% to 1% of the loan . fees when buying a house

More than a Mortgage: Eight Surprising Costs of Buying a Home

Finally, at the closing table, Sarah and Mike had to "prepay" for certain future expenses: : Their bank required an appraisal to confirm

Meet Sarah and Mike. They just found their dream cottage for $400,000. They have their 20% down payment ready, but their lender just handed them a "Loan Estimate" that made them realize the sticker price was only the beginning.

Before they could even finish the paperwork, Sarah and Mike had to open their wallets for early due diligence: : The lender charged a fee to process

As the closing date approached, the administrative costs—often called —began to stack up, typically totaling 2% to 6% of the loan amount :