3 Main Costs to Consider When Buying Your First Home!🤩
Buying that first home brings out all the emotions… including confused. There are a lot of steps that go into buying that first home, and they don’t get discussed that often. Who pays commission? Who pays closing costs? How much is a down payment? Those are just a few questions you may have after taking the jump into the world of home-buying.
I know you probably have an Aunt Karen* (who hasn’t bought a home since the early 1980’s) giving you real estate advice… don’t take it. Be polite, and then reach out to accurate sources (LIKE ME!). Real estate agents are a great resource to reach out to and ask questions! This blog is designed to give the readers an insight into the home-buying world today. Below I’ve listed the 3 biggest costs to consider when buying your first home.
🏡Down payment: Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Use a down payment calculator to decide a goal, and then set up automatic transfers from checking to savings to get started.
🏡Closing costs: These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around.
🏡Move-in expenses: You’ll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades and furnishings.
So, buying your first home may be a little scary, but having information like this can be the difference between blindly paying for things you dont understand, and being “in the know”!
Feel free to reach out if you have questions about anything; I would love to help you find your dream home, or just make that first step towards being a homeowner!