What Out-of-Pocket Costs Should You Expect When Buying a Home?

When preparing to buy a home in Georgia, it’s important to understand all the out-of-pocket costs that come up along the way.

These aren’t always paid at once — but they are separate from your mortgage and should be factored into your budget.

Here’s a breakdown of the most common costs buyers should expect:

1. Earnest Money Deposit

This is the money you put down when your offer is accepted to show you're serious about buying. In Georgia, it’s usually 1% to 2% of the purchase price and is held in escrow until closing.

It eventually goes toward your total costs — but you’ll need to pay it up front.

2. Inspection Fees

Once your offer is accepted, you’ll likely schedule a home inspection, which is paid out of pocket — even if the deal doesn’t close.

Inspections usually cost between $300 and $500 depending on the property and any add-ons like pest or roof inspections.

3. Appraisal Fee

Your lender will require a home appraisal to confirm the value of the property. This is another cost paid directly and typically runs $400 to $600.

4. Down Payment

This is the biggest chunk — typically 3% to 5% of the purchase price for most loans. It’s paid at closing but not rolled into your loan amount.

Loan programs with lower down payment options or assistance may reduce this amount.

5. Closing Costs

These are the various fees and charges that come with finalizing the loan and ownership transfer. In Georgia, closing costs usually run 2% to 3% of the home price and include:

• Title fees
  
  

• Attorney fees
  
  

• Lender charges
  
  

• Prepaid taxes and insurance
  
  

Some of these may be negotiable or even covered by the seller — we’ll help you explore your options.

6. Escrow Account Set-Up

Your lender will likely require an escrow account to collect prepaid taxes and insurance. This ensures those bills are paid on time after you move in.

You’ll typically need a few months' worth of taxes and insurance ready to fund that account at closing.

Final Thoughts

Buying a home is exciting — and knowing what to expect financially helps everything go more smoothly.

At Clareo Group, we’ll guide you through every cost, deadline, and detail so you’re never caught off guard.

🎙️ Be sure to catch Inside Georgia Real Estate every Saturday at 1PM on WSB 95.5 FM for more market tips and insights from Deborah Morton.

📞 Ready to take the next step toward homeownership?

We’ll help you understand the full cost picture — and build a plan that works for your budget.