Hope Leitner, Realtor®, CRS

  Knowing what to budget for when buying a home may feel intimidating — but it doesn’t have to be. By understanding the costs you may encounter upfront, you can take control of the process. Here are just a few things experts say you should be thinking about as you plan ahead. 1. Down Payment Saving for your down payment is likely top of mind. But how much do you really need? A common misconception is that you have to put down 20% of the purchase price. But that’s not necessarily the case. Unless it’s specified by your loan type or lender, you don’t have to. There are some home loan options that require as little as 3.5% or even 0% down. An article from  The Mortgage Reports  explains: "The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals.  If you don’t have a large down payment saved up, don’t worry—there are plenty of options available . . ." A trusted lender will go over the various loa...

Before you buy a home, it’s important to   plan ahead . While most buyers consider how much they need to save for a   down payment , many are surprised by the closing costs they have to pay. To ensure you aren’t caught off guard when it’s time to close on your home, you need to understand   what closing costs are and how much you should budget for . What Are Closing Costs? People are sometimes surprised by closing costs because they don’t know what they are. According to  Bankrate : “Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .” In other words, your closing costs are a collection of fees and payments involved with your transaction. According to  Freddie Mac , while they can vary by location and situation, closing costs typically include: Government recording costs Appraisal fees Credit report...