If you are planning to buy a home, knowing what to budget for and how to save may sound intimidating. It doesn’t have to be. One way to ease those concerns is to make sure you understand some of the costs you may encounter up front. I can help you set a plan. We can take a strategic look at your budget and your process before you get started.
Here are just a few things you should be thinking about:
1. Down Payment
Saving for your down payment is likely top of mind as you set out to buy a home. Do you know how much you will need? While every buyer’s situation is different, there is a common misconception that putting 20% of the purchase price down is required. That’s a myth. The right amount depends on your current savings and your home buying goals. I can help you understand the many loan options available to you.
2. Closing Costs
Make sure you budget for closing costs. They are a collection of fees and payments made to the various parties involved in your transaction. I can provide you with answers to the questions you might have.
3. Earnest Money Deposit
An earnest money deposit is money you pay as a show of good faith when you make an offer on a house. This deposit works like a credit. It’s not an added expense. It’s paying a portion of your costs upfront. It tells the seller you are in earnest as a buyer.