3 Big Costs to Save and Budget for When Buying a Home

One of the most intimidating things about buying a home is the uncertainty of the costs. When buying a home there are 3 big costs to save and budget for and they are as follows:

1. Down Payment. This is what most people anticipate, and may not know exactly how much that should be. We hear 20% down is required, and that amount is not set and depends on your savings and home-buying goals. Some loan products allow 0% down. Partner with us and one of our trusted lenders to understand the various loan options available to you.

2. Closing Costs. These are fees and payments made to various people involved in the transaction. It may vary based on your loan requirements and location, but some of these costs could be an application fee, title fees, homeowner’s insurance, and/or loan origination fee. In Illinois, the average closing costs are about $6,500 including tax.

3. Earnest Money Deposit (EMD). An EMD is money you pay when you make an offer on a house to show a seller you are a serious buyer, usually 2% of the home price. This money is considered a credit because it will go toward the down payment and closing costs. In the event you default on the agreement, the Seller gets to keep the EMD as damages. Some agreed-upon contingencies that protect a Buyer can be included, such as a home inspection, appraisal clause, and mortgage financing clauses which make the EMD refundable.

📱Call/text us at 847-530-0534 or 💻 email us and we’d be happy to go over the breakdown of costs with you.