• Down Payment 

  • This varies based on your loan program, property type and qualifications. Plan on saving 3%-20% of your home value to put down initially as your down payment on your loan. The more you can put down the lower your monthly payment can be! This is an important one to chat with a lender about your specific goals and financial situation. 

• Closing Costs 

  • In addition to your down payment you need to bring additional funds to closing we call "closing costs" These are additional fees required to originate and close the loan. We have a Title Company that handles all the final paperwork and will conduct the closing. There's also additional fees for documents, your local area etc. This is typicaly an additional 2-5% of your loan amount. ​

• Insurance

  • Home Owners insurance is paid monthly and put into an "escrow" or holding account so you have enough money set aside to pay the insurance company when it comes due. This is an important cost to shop around for to ensure you're getting good rates and the best coverage. 

• Mortgage insurance 

  • If you put less than 20% down on your loan you'll also have an additional monthly fee of Private Mortgage insurance or PMI. This fee helps protect the lender if you stop making payments on your mortgage. The good news is, this cost can be removed from your monthly payment once you reach a certain amount of equity in your home. ​

• Taxes 

  • Property taxes are also paid monthly and put into an escrow account. This way when your tax bill comes due, you've already set aside enough to pay it in full! Property taxes vary by city, state, and county. ​

• HOA Dues ​

  • Home Owners Association Dues vary by neighborhood, typically paid monthly or yearly, this is an additional cost you need to pay monthly. Some HOAs have an initiation fee you need to pay up front to join. ​

• Inspection 

  • Unless you're waiving your right to an inspection to make your offer more competitive, you need to account for an additional $500-$700 to pay a professional and licensed inspector to thoroughly inspect all the in home systems for proper use, health, and safety issues. You can also choose to have additional inspections like Radon, Meth, and Lead Based Paint is these are substances you are concerned about. ​

• Appraisal 

  • When getting a loan, the bank needs to ensure that the home you're purchasing is worth the amount they're lending on it. An unbiased 3rd party called an appraiser will come out and evaluate the home's value. This typically costs around $700 paid before closing.  ​

• Moving Costs 

  • Whether you're moving down the block or across the county moving is an intense process. You'll need to account for packing supplies, boxes, a U-Haul or moving truck, hotels etc. ​

• Home Renovations 

  • Unless you're moving in to your perfect dream home there's probably some renovations or tweaks you'd like to make to the home to make it feel and look like yours. This could be as simple as a few gallons of paint, or as intense as an entire remodel. Be sure to set aside some money to customize and renovate your home to your liking ​

• Furniture​

  • While not an immediate necessity, if you're moving to a larger home, you'll need more furniture to fill the larger space! Keep an eye on Facebook Market Place, Craigslist, thrist and resale stores for more affordable options. Overwhelmed with the thought of decorating and furnishing your new place? Consider hiring an interior designer to do it for you. ​

Whew! I know that sounds like a huge investment of both time and money. Knowing what to expect and saving appropriately is the first step to owning a home! 

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