Thinking About Buying a Home? Here’s What to Budget For! 💰🏡

Buying a home is exciting, but knowing the true costs upfront can help you plan with confidence. Here’s a breakdown of what to expect:

💰 Upfront Costs:

• Down Payment – Typically 3%–20% of the purchase price, depending on the loan type.
• Earnest Money Deposit – A good-faith deposit (1%–3% of the home price) credited toward closing costs.

🔧 Ongoing & Post-Purchase Costs:

• Moving Expenses – Hiring movers or renting a truck.
• HOA Fees – If applicable, varies by community.
• Utilities & Maintenance – Monthly bills and home upkeep costs.

📜 Closing Costs (2%–5% of Home Price):

• Title Insurance & Search Fees – Protects against ownership disputes.
• Escrow Fees – Covers transaction management by a third party.
• Property Taxes – Typically prepaid for several months at closing.

📑 Loan-Related Costs:

• Loan Origination Fees – Lender charges for processing the mortgage.
• Appraisal Fee – Determines the home’s market value (usually $300–$600).
• Credit Report Fee – Covers the cost of pulling your credit report.

🏡 Inspection & Insurance Costs:

• Home Inspection – Evaluates the property’s condition ($300–$500+).
• Pest Inspection – Required in some areas, typically $100–$300.
• Homeowners Insurance – Required by lenders, cost varies by location and coverage.