Are You Saving Towards a Home Purchase in 2024?

Planning to purchase a home can seem daunting, especially when it comes to budgeting and saving. However, with the right guidance, this process can be simplified. Engaging with experienced real estate professionals is a crucial step. They can assist in devising a plan, offering a detailed look at your budget, and guiding you through the initial stages of home buying.

Consider these key points recommended by experts:

Down Payment

The down payment is often a primary focus for prospective homebuyers. It’s important to know how much you need to save. A common misconception is the necessity of a 20% down payment. However, as noted in a Mortgage Reports article:

“The idea that you have to put 20% down on a house is a myth. . . . The right amount depends on your current savings and your home buying goals.”

To explore your options, collaborate with real estate experts. They can guide you through different loan types, down payment assistance programs, and their respective requirements, making the process smoother.

Closing Costs

Allocating funds for closing costs is also essential. These are the fees and payments due to various parties in your real estate transaction. As Bankrate outlines:

“Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re refinancing a mortgage or buying a new home. These costs can amount to 2 to 5 percent of the mortgage so it’s important to be financially prepared for this expense.”

Consulting with a reliable lender is the best way to understand your closing cost obligations. They can answer any queries you might have.

Earnest Money Deposit

Consider saving for an earnest money deposit (EMD) as well. An EMD is a sign of good faith when placing an offer on a house. Typically, as Realtor.com states, it’s about 1% to 2% of the total home price. This deposit acts as a credit, not an additional expense. It’s essentially a part of your purchase costs paid in advance, demonstrating your commitment to the seller. Realtor.com explains its role in the sale process:

“It tells the real estate seller you’re in earnest as a buyer . . . Assuming that all goes well and the buyer’s good-faith offer is accepted by the seller, the earnest money funds go toward the down payment and closing costs. In effect, earnest money is just paying more of the down payment and closing costs upfront.”

Remember, an EMD is not mandatory and doesn’t ensure offer acceptance. Consulting with a real estate advisor is vital to understand what suits your situation and any local requirements. They can provide guidance on strategic decisions throughout the buying process.

Bottom Line

Being well-informed about saving for a home purchase is crucial. Connect with Countryside Homes NJ and RE/MAX Select to have expert advice and answers to your questions throughout your home-buying journey.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!