Buying a home is an exciting milestone, but it comes with financial commitments that go beyond the purchase price.
Understanding these costs can help you plan and budget effectively, ensuring you’re prepared for every step of the journey.
Here’s a detailed look at what to expect:
Down Payment and Earnest Money
Before you even purchase the home, you’ll need upfront cash for your earnest money and down payment. While many people believe you must put down 20%, there are loan programs that require much less—as little as 3.5%, or even 0% for those who qualify.
Your Monthly Mortgage Payment
Your monthly payment will typically include these three key components:
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Principal: The actual amount you’re borrowing.
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Interest: The cost of borrowing money for your home.
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Escrow: A third-party account that pays property taxes and insurance on your behalf.
Additionally, you’ll need to account for closing costs—a one-time payment due when your loan is finalized. These costs vary but often include:
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Loan origination fees
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Appraisal and inspection costs
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Title insurance
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Recording fees
Tip: You can negotiate with the seller to cover some or all of your closing costs. If that’s not possible, let’s discuss the option of rolling these costs into your loan.
Other Expenses to Budget For
Owning a home comes with ongoing expenses and responsibilities. Here are a few you should prepare for:
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Maintenance and Upkeep: Routine repairs, landscaping, and other upkeep are necessary to protect your investment.
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Utilities: Monthly bills for electricity, water, internet, and more.
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Moving Costs: Whether you’re hiring movers or recruiting friends, set aside funds for a smooth transition into your new home.
If you have any questions about these costs or want to explore your financing options, the Greenway Mortgage team is here to help. Contact us anytime. 888-616-9885.
