If you’re getting ready to buy a home, figuring out what to budget for might seem overwhelming. But it doesn’t have to be! One helpful step is learning about the costs you’ll face upfront. And a great way to do that is by seeking guidance from real estate pros. They can help you plan and sort out your budget before diving in.
Here are a few important things to consider:
Down Payment
Saving up for your down payment is crucial when buying a home. But how much do you actually need? While it’s commonly believed that putting down 20% is a must, that’s not always the case. The amount depends on your savings and goals. Working with real estate experts can help you explore different loans and assistance programs to find what suits you best.
Closing Costs
Don’t forget about closing costs! These cover various fees involved in finalizing the deal, usually ranging from 2 to 5% of the mortgage. Talking to a reliable lender can give you a clearer picture of what to expect.
Earnest Money Deposit (EMD)
Consider setting aside money for an earnest money deposit. It’s a way to show you’re serious about buying a house, typically around 1% to 3% of the home price. This deposit acts as a credit, using some of your saved money upfront to demonstrate your commitment to the seller. If things go smoothly, this money goes towards your down payment and closing costs.
In summary, being aware of what to save for when buying a home is crucial. Seeking guidance from real estate professionals like Steve and Sandra can provide valuable insights and support throughout your home-buying journey.
