The time has come. You’ve been saving for years, you’ve cut back on your daily Starbucks, held off on Target runs, and even denied plenty of weekend brunches. All this time, you’ve been squirreling away your money for that big goal: the purchase of your new home.
We’re not going to lie, buying a home is an expensive ordeal. You’ve been doing great with saving, but now it’s time to pinpoint exactly how much money you’ll be spending on all the fees that come along with purchasing a home.
Here’s what you need to budget for when it comes to buying a home:
- First and foremost, calculate your current monthly budget. Add up how much you are spending month over month on bills, food, savings, etc.
- From there, evaluate how much you currently have saved and ready for home buying use
- Price out how much you have to put down for a down payment. This could range anywhere from 3% to 20%.
- Set aside extra fees for closing costs. As a rule of thumb, you’ll want to save about 2% to 5% of your purchase price.
- Once your home closes, you’re certainly not out of the clear just yet with fees. You have to fill your home too! Depending on where you are at in your life, you could have extra fees arise for moving, furniture, decorating, and any new appliances you deem necessary.
- From then on, you will be responsible for your monthly mortgage payments as well as utilities and any issues that arise including appliance maintenance, landscaping, and more.
- Once you calculate your budget, you should have a clearer idea of what you need in your piggy bank before pulling the trigger on the homebuying process.
- If you need help, reach out to your realtor, family, friends, financial advisers, or loved ones; you’ll find everyone’s situations are different and you’re bound to find the best advice for you.
Are you ready to venture into the home buying process, but don’t know where to start? Thankfully, BSR Realty Group has everything you need to help you find your next home. Contact BSR Realty Group today to get started on your new home hunt!
