Saving for a Home? Here’s What to Budget For

Buying a home is an exciting milestone, but it’s important to know there’s more to the cost than just the purchase price. Being financially prepared will help you avoid surprises and make the process smoother. Here are the key expenses to plan for when saving for a home. 

1. Down Payment

The down payment is likely the biggest upfront cost when buying a home. 

- It typically ranges from 3-20% of the home’s price, depending on the loan type. 

- For first-time buyers or veterans, programs like FHA loans and VA loans can reduce the required down payment significantly. 

2. Closing Costs

These are the fees associated with finalizing your home purchase, and they usually total 2-5% of the home’s price. 

What Closing Costs Cover: 

- Appraisals 

- Title insurance and services 

- Loan origination fees 

Planning for these costs ensures you’re financially ready when it’s time to close on your home. 

3. Moving Expenses

Once you’ve purchased your home, the next step is moving in—and those costs can add up quickly. 

Moving Costs to Consider:

- Hiring movers or renting a moving truck 

- Setting up utilities and internet 

- Purchasing new furniture or appliances 

4. Ongoing Homeownership Expenses

Owning a home comes with recurring costs beyond the mortgage. 

Key Expenses to Budget For: 

- Property Taxes: These vary based on your home’s location and assessed value. 

- Homeowners Insurance: Protects your investment against unexpected events. 

- Maintenance and Repairs: From regular upkeep to unexpected repairs, it’s essential to have a savings buffer for these costs. 

Not Sure Where to Start? Let’s Plan Together!

If some of these terms or costs are new to you, don’t worry! As your trusted Realtor, I’ll guide you through every step of the process. From understanding your financial needs to connecting you with a reliable lender, I’ll make sure you’re confident and prepared when it’s time to buy. 

Let’s Make Your Homeownership Dream a Reality 

Saving for a home doesn’t have to feel overwhelming. With the right plan in place and expert guidance, you’ll be ready to take the next step toward owning your dream home. 

Contact Kristen Smith, Realtor, today to start your journey with confidence. Together, we’ll make your dream of homeownership a reality! 

The right preparation today can lead to the perfect home tomorrow.

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