If you're planning to buy a home in 2024, knowing what to budget for and how to save may sound intimidating — but it doesn't have to be. One way to ease those concerns is to ensure you understand some of the costs you may encounter upfront.
Down Payment
Saving for your down payment is likely top of mind. But do you know how much you'll need? There's a common misconception that putting 20% of the purchase price down is required.
“The idea that you have to put 20% down on a house is a myth. The right amount depends on your current savings and your home buying goals.”
To understand your options, partner with trusted real estate professionals to go over the various loan types, down payment assistance programs, and what each one requires.
Closing Costs
Make sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction.
The best way to understand what you'll need at the closing table is to work with a trusted lender who can provide you with estimates.
Earnest Money Deposit
Consider saving for an earnest money deposit (EMD) — money you pay as a show of good faith when you make an offer. It's usually between 1% and 3% of the purchase price.
This deposit works like a credit. It's not an added expense — it's paying a portion of your costs upfront.
Bottom Line
Being informed about what to save for is key when buying a home in 2024. Let's connect so you'll have an expert to answer any questions you have along the way.