Saving Up For A Home?
Here are some quick Tips!
One of the most intimidating aspects of purchasing a home, especially for first-time buyers and younger people, is budgeting and managing payments for the property. Luckily, our friends at Keeping Matters Current have made this handy list of need-to-know tips and facts that is sure to destress you in your search for your dream home!
- Firstly, remember that down payments are not rigidly locked in to a certain percent. Rather, it will depend on your own savings, as well as the home and payment plan you hope to achieve. While most people assume their down payment might be 20%, remember it can be lower or higher. Ask your realtor about this so you can get a better idea based on your goals.
- Other important expense, which are often overlooked, include the closing costs. These are the fees for various people and processes that help complete the home buying process, including appraisal, home inspection, and attorneys. These fees can be up to 5 percent of the mortgage, and sometimes more, so talk to your lender and make sure your finances are in order for them.
- While not explicitly necessary, an Earnest Money Deposit, or EDM, can be a show of good faith for sellers. This is usually an upfront payment for the home; it is a small payment, making up only 1 or 2% of the full house price, usually. It is important to remember that the EDM is not required, and does not guarantee you the home.
Hopefully, with these tips you can move forward on your home-buying journey. Remember to check Jet Direct’s blog for more helpful tips and news!