When buying a home, several costs go beyond the purchase price of the property. Here are the primary expenses you should be prepared for: Down Payment: This is the initial payment made towards the purchase price, typically ranging from 3% to 20% of the home's price, depending on the loan type and lender requirements. Closing Costs: These fees generally range from 2% to 5% of the loan amount and can include: Loan Origination Fees: Charges by the lender for processing the loan application. Appraisal Fees: The cost of having the property professionally appraised to determine its value. Title Insurance and Search Fees: Ensures the property title is free of liens and other issues. Recording Fees: Costs for recording the deed and other legal documents with the local government. Attorney Fees: In some states, an attorney is required to handle the closing process. Home Inspection Fees: It's advisable to have a professional home inspection to identify potential issues with the property. This can cost between $300 and $500. Private Mortgage Insurance (PMI): If your down payment is less than 20%, you may need to pay PMI, which protects the lender in case of default. Property Taxes and Homeowner’s Insurance: These are usually prorated and paid at closing. You’ll also need to budget for ongoing annual property taxes and homeowner’s insurance. Prepaid Interest: Depending on the closing date, you might have to prepay interest that will accrue from the closing date until the end of the month. Homeowners Association (HOA) Fees: If the property is in a community with an HOA, you may need to pay prorated dues at closing. Moving Costs: Budget for moving expenses, which can vary depending on the distance and amount of belongings. Utility Adjustments and Deposits: You may need to adjust and transfer utilities, which sometimes require deposits. Miscellaneous Expenses: This can include repairs, maintenance, and initial furnishing or updates to your new home. Being aware of these costs will help you plan your budget more effectively and avoid any financial surprises during the homebuying process. #realestateadvice #equitycommodity #homebuying #buyersadvice # #normangetsresults #brightonrealestate #homeownership