Ignite FB Tracking PixelHow to Plan Your Expenses for Your First Home - Mary Kay Daughters/ Jeff Brown
Hoffman International Properties LLC
Mary Kay Daughters/ Jeff Brown, Hoffman International Properties LLCPhone: (203) 273-3743
Email: [email protected]

How to Plan Your Expenses for Your First Home

by Mary Kay Daughters/ Jeff Brown 11/14/2021

Buying your first home can be an exciting process, but with so many different expenses to account and plan for, it can also be overwhelming. Not sure where to begin with it comes to saving for your first home? There are a few expenses you won't want to overlook.

Down Payment

First, make sure you have enough money saved up for a down payment. This amount can vary depending on the sale price of the home you purchase and the type of mortgage you take out. For a conventional home loan, for example, you'll be expected to make a minimum 20% down payment. FHA loans, however, only require 3.5% down. Meanwhile, if you qualify for a VA loan or a USDA loan, you might not have to make a down payment at all.

Closing Costs

Closing costs are another notable expense that can vary based on the sale price of the home and even where you live. However, expect closing costs to account for about 2-5% of the sale price of your home. This means if you're buying a home for $150,000, you can expect to pay between $3,000 and $7,500 in closing costs.

Appraisals/Inspections

Having a home appraised and inspected is par for the course for most home sales. An appraisal determines the current value of the home to make sure that you're not paying more for it than what it's worth. Meanwhile, an inspection looks for underlying issues with a home (such as a leaky roof or a short-cycling HVAC unit) that you'll want to be aware of before closing.

Appraisal and inspection costs can vary, but you should typically expect to pay between $200 and $600 for a home appraisal. Meanwhile, inspections cost an average of about $300.

Furniture and Lawn Care Equipment

Once you buy your home, you'll probably need to buy your fair share of furniture. Likewise, if you're coming from an apartment-living situation, you may also need to purchase some lawn care equipment such as a lawnmower, weed eater and other gear.

As you can see, these costs can add up quickly—so it's important to plan accordingly and make sure you've saved up enough money to purchase your first home comfortably. From there, you can close on your home with confidence.

About the Author
Author

Mary Kay Daughters/ Jeff Brown

Thank you for visiting our website! We're the Realtor team of Mary Kay Daughters & Jeff Brown. Please be sure to look at our “Promotion Event Tab”, at top of page, for typical property marketing event examples. As members of the Greenwich, Darien & Connecticut State MLS Boards, we are your single-source Realtor team who has Shown, Listed & Sold many dream-homes, throughout Fairfield, Litchfield & New Haven Counties. 

We work hard to develop an understanding of your lifestyle & living goals to: 1). Assist you in finding & buying your dream home. 2). Estimate the market value of your home with a free Comparative Market Analysis (CMA), in order to sell your home. When Buying, we make your home search fun and keep your property information organized. When Selling, we use special marketing techniques and as a professional photographer, act as your personal public relations property promoter! 

Whether you're in the beginning of your real estate search or, you know exactly what you're looking for, or you want to sell, you'll benefit from our experience and area knowledge. Call, Email or Text us anytime! We would be honored to put our real estate experience to work, for you!