Are you planning to buy a home in the near future? If so, you’re probably wondering how much it will cost. And while budgeting for your dream home can seem daunting at first, it doesn’t have to be. By understanding some of the common costs associated with buying a home, you can take the fear out of saving for your down payment and other expenses.
To get started, turn to trusted real estate professionals. They can help you plan your finances and prepare your budget. Here are just a few of the costs experts say you should expect…
1. Down Payment: Depending on the type of home you’re looking to buy, your down payment could be anywhere from 3% to 20% of the purchase price. To understand your options, partner with a trusted real estate professional to go over the various loan types, down payment assistance programs, and what each one requires.
2. Closing Costs: These are fees associated with finalizing your home purchase, and they can add up to 2% to 5% of the loan amount. The best way to understand what you’ll need at the closing table is to work with a trusted lender. They can provide you with answers to the questions you might have.
3. Earnest Money Deposit: This is a deposit made by the buyer to show that they’re serious about purchasing a home. The earnest money deposit is typically 1% to 3% of the purchase price. Keep in mind, an EMD isn’t required, and it doesn’t guarantee your offer will be accepted. It’s important to work with a real estate advisor to understand what’s best for your situation and any specific requirements in your area. They’ll help you determine what moves you should make in the homebuying process to have the greatest success.
Budgeting for your home purchase doesn’t have to be scary.
Let’s connect so you’ll have an expert on your side to answer any questions you