If you’re planning to buy a home in Moon Twp PA or anywhere in Western PA, knowing what to budget for and how to save may sound scary at first. But it doesn’t have to be. One way to take the fear out of budgeting is understanding some of the costs you might encounter. Contact trusted real estate professionals from the Diane McConaghy Team at RE/MAX Select Realty. They can help you plan your finances and prepare your budget.
Here are just a few costs experts say you can expect.
1. Down Payment
Saving for your down payment is likely top of mind as you set out to buy a home. But do you know how much you’ll need to save? While each situation is different, there’s a common misconception that putting 20% down toward your purchase is required. That’s not always the case. You can put down as little as 3.5%. The right amount depends on your current savings and your home buying goals.
To understand your options, we can put you in touch with a lender to go over the various loan types, down payment assistance programs, and what each one requires.
2. Closing Costs
Make sure you also budget for closing costs. Closing Costs are a collection of fees and payments made to the various people involved in your transaction. They are fees you pay when finalizing a real estate transaction. Closing Costs are due whether you are buying a new home or refinancing a mortgage. These costs can amount to 2 to 5% of the mortgage. It’s important to be financially prepared for this expense.
The best way to understand what you’ll need at the closing table is to work with a trusted lender. They can provide you with answers to the questions you might have.
3. Earnest Money Deposit
If you want to cover all your bases, you should also save for an earnest money deposit (EMD). An EMD is money you pay as a show of good faith when you make an offer on a house. This is usually between 1% and 2% of the total home price.
This deposit works like a credit. It’s not an added expense – it’s paying a portion of your costs upfront. You’re using some of the money you already saved for your purchase to show the seller you’re committed and serious about their house.
Keep in mind, an EMD does not guarantee your offer will be accepted. The full-time realtors at the Diane McConaghy Team can help you to understand what’s best for your situation. They’ll help you determine what moves you should make in the homebuying process to have the greatest success.
Budgeting for your home purchase doesn’t have to be scary. Let’s connect so you’ll have an expert on your side to answer any questions you have along the way.