Most buyers know they need a down payment. Fewer realize that a North Carolina purchase involves several other checks you write before and at closing. Here is what to plan for, in the order you usually pay it.

1. Due diligence fee (paid when your offer is accepted)

In North Carolina, the standard offer form lets a buyer pay the seller a due diligence fee in exchange for time to inspect, appraise and secure financing. It is paid directly to the seller, and it is generally non-refundable unless the seller breaches the contract. If you close, it is credited toward your purchase price. The amount is negotiated in each offer; there is no set figure.

2. Earnest money deposit

Earnest money is held in escrow, usually by the closing attorney or a brokerage trust account. Under the standard form, it is generally refundable if you terminate before the end of the due diligence period. It is also credited to you at closing.

3. Inspections and surveys

You pay inspectors directly, usually during the due diligence period. A general home inspection is the starting point. Depending on the home, you may add a termite (wood-destroying insect) report, a radon test, a sewer or septic inspection, a well test, or a survey.

4. Appraisal

If you are using a mortgage, your lender orders an appraisal. You typically pay for it up front or at closing, depending on the lender.

5. Down payment and closing costs

At closing you bring your remaining down payment plus closing costs: lender fees, the closing attorney's fee, title insurance, recording fees and similar items. Your lender's Loan Estimate lists these for your specific loan.

6. Prepaid items

Lenders usually collect some costs in advance, such as your first year of homeowners insurance, some property tax and interest, and money to start your escrow account.

A worked example (sample numbers only)

The figures below are illustrations, not estimates. Your real numbers depend on the home, your loan and what you negotiate.

Item Example amount Credited at closing?
Due diligence fee $2,000 Yes
Earnest money $5,000 Yes
Home inspection and add-ons $700 No
Appraisal $600 No
Down payment Set by your loan program -
Closing costs and prepaids From your Loan Estimate -

In this example, the buyer has $7,700 out of pocket before closing, and $7,000 of it comes back as a credit at closing.

Can I get help with the down payment?

Possibly. Some loan programs need little down, and North Carolina has down payment assistance programs with their own income and price limits. A lender can tell you what you qualify for.

Next step

The clearest way to know your numbers is a preapproval. Our lending partner can walk you through your Loan Estimate line by line. Get preapproved on our Financing page, or talk with Scott at 919-740-0379.

This article is general information, not legal or financial advice. Confirm fees and terms with your lender and closing attorney.