Knowing what to budget for when buying a home may feel intimidating — but it doesn’t have to be. You can take control of the process by understanding the costs you may encounter upfront.

Here are a few things experts say you should consider as you plan ahead.

1. Down Payment

Saving for your down payment is likely at the top of your mind. But how much do you need? A common misconception is that you must pay 20% of the purchase price. But that’s not necessarily the case. You don’t have to unless your loan type or lender specifies it. 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 loan types with you, any down payment requirements on those, and down payment assistance programs you may qualify for. The more you know ahead of time, the easier the process will be. The key to getting the needed information is working with a pro to see what’ll work best for your situation.

2. Closing Costs

Make sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction. Bankrate explains:

“Mortgage closing costs are the fees associated with buying a home that you must pay on closing day. Closing costs typically range from 2 to 5 percent of the total loan amount, and they include fees for the appraisal, title insurance and origination and underwriting of the loan.”

Regarding closing costs, a trusted lender can guide you through specifics and answer any questions you may have. They can also give you a better idea of how much you should be prepared to pay so you can confidently cruise through your closing.

As you plan for closing day, be sure to budget for your real estate agent’s professional service fee, too, in case the seller doesn’t cover it. But don’t worry—you’ll work with your agent ahead of time to agree on this so that you won’t be surprised at the finish line.

3. Earnest Money Deposit

And if you want to cover all your bases, you can also consider saving for an earnest money deposit (EMD). According to Realtor.com, EMD is typically between 1% and 2% of the total home price and is money you pay as a show of good faith when you make an offer on a house.

But it’s not an added expense. Instead, it works like a credit and covers some upfront costs. You’re simply using some of the money you’ve already saved for your purchase to show the seller you’re committed and serious about buying their house. Realtor.com describes how it works as part of your sale:

“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 that this isn’t required and doesn’t guarantee your offer will be accepted. Working with a real estate advisor is necessary to understand what’s best for your situation and any specific requirements in your local area. They’ll advise you on what moves you should make so you can make the best possible decisions throughout the buying process.

Bottom Line

What is the key to a successful homebuying savings strategy? Being informed about what you need to save for. Because, when you understand what to expect, you can plan ahead. With an expert agent and a trusted lender, you’ll have the information you need to move forward confidently.

Let’s face it – life can throw some curveballs. Financial struggles can happen to anyone, whether it’s a job loss, unexpected bills, or a natural disaster. But here’s the good news. If you’re a homeowner feeling the squeeze, there’s a lifeline many people don’t realize is still available: mortgage forbearance.

What Is Mortgage Forbearance?

As Bankrate explains:

“Mortgage forbearance is an option that allows borrowers to pause or lower their mortgage payments while dealing with a short-term crisis, such as a job loss, illness or other financial setback . . . When you can’t afford to pay your mortgage, forbearance gives you a chance to sort out your finances and get back on track.”

A common misconception is that forbearance was only accessible during the COVID-19 pandemic. While it did play a significant role in helping homeowners through that crisis, what many people don’t know is that forbearance is still a tool to support borrowers in times of need. Today, it remains a vital option to help homeowners in certain circumstances avoid delinquency and, ultimately, foreclosure.

The Current State of Mortgage Forbearance

Forbearance continues to serve as a valuable safety net for homeowners facing temporary financial challenges. While the overall forbearance rate has slightly increased recently, it’s essential to understand what’s driving this change and how it fits into the broader picture.

According to Marina Walsh, VP of Industry Analysis at the Mortgage Bankers Association (MBA):

“The overall mortgage forbearance rate increased three basis points in November and has now risen for six consecutive months.”

This may seem concerning, but let’s break it down. The graph below, going back to 2020, puts things into perspective:

While the share of mortgages in forbearance has significantly declined since its peak in mid-2020, there has been a slight but notable increase in recent months. This uptick is primarily tied to the effects of two recent hurricanes — Helene and Milton.

Natural disasters like these often create temporary financial hardships for homeowners, making forbearance a crucial safety net during recovery. In fact, 46% of borrowers in forbearance today cite natural disasters as the reason for their financial struggles.

Even with the most recent uptick, the share of mortgages in forbearance is nowhere near pandemic levels and, thankfully, reflects a tiny portion of homeowners overall.

Why Forbearance Matters

Forbearance can help borrowers avoid the spiral of missed payments and foreclosure. It provides breathing room to address challenges and plan the next steps. While most homeowners today are not in a position to need forbearance, thanks to substantial equity and the current housing market’s foundations, it is an option for the few who need it.

If you or a homeowner you know is facing financial difficulties, the first step is to contact your mortgage lender. They can walk you through the forbearance process and help you understand your options. Remember that forbearance is not automatic — you must apply and discuss the terms with your lender.

Bottom Line

In tough times, knowing your options can bring peace of mind. Forbearance isn’t just a financial tool — it’s a lifeline. And while the recent increase in forbearance rates might make headlines that give you pause, the truth is this option is working precisely as it should: helping those who need it most get through difficult moments without losing their homes.

Are you trying to decide whether buying a home now or waiting makes more sense? There’s much to consider, from what’s happening in the market to your changing needs. But generally speaking, aiming to time the market isn’t a good strategy – too many factors are at play for that to be possible.

That’s why experts usually say time in the market is better than timing the market.

In other words, if you want to buy a home and you can make the numbers work, doing it sooner rather than later is usually worth it. Bankrate explains why:

“No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately.”

Here’s some data to break this down so you can see the benefit of buying now versus later – if you can. Each quarter, Fannie Mae releases the Home Price Expectations Survey. It asks over one hundred economists, real estate experts, and investment and market strategists what they forecast for home prices over the next five years. In the latest release, experts are projecting home prices will continue to rise through at least 2029 – just at a slower, more regular pace than they did over the past few years (see the graph below):

But what does that mean for you? To give these numbers context, the graph below uses a typical home value to show how it could appreciate over the next few years using those HPES projections (see graph below). You could start earning this in equity if you buy a home in early 2025.

In this example, let’s say you go ahead and buy a $400,000 home this January. Based on the expert forecasts from the HPES, you could gain more than $83,000 in household wealth over the next five years. That’s not a small number. If you keep renting, you’re losing out on this equity gain.

And while today’s market has its fair share of challenges, buying will be worth it in the long run. If you want to buy a home, don’t give up. There are creative ways we can make your purchase possible. From looking at more affordable areas to considering condos or townhomes or even checking out down payment assistance programs, there are options to help you make it happen.

So sure, you could wait. But if you’re waiting to time the market perfectly, this is what you’re missing out on. And that decision is up to you.

Bottom Line

If you’re torn between buying now or waiting, remember that it’s time in the market, not timing the market, that truly matters. Let’s connect if you want to discuss what you need to do to get the process started today.

If buying a home is on your goal sheet this year, here’s how to make it happen. Focus on improving your credit, planning for your down payment, getting pre-approved, and prioritizing your wish list. But first, let’s connect so you have expert advice every step of the way.

You may have heard that staging your home correctly can make a big difference when you sell it. But what exactly is home staging, and is it worth your time and effort?

Here are a few quick FAQs to help you decide how much to prioritize staging as you prepare for your move.

What Is Home Staging?

Staging is the process of arranging and decorating your house to highlight its best features and make it as appealing as possible to potential buyers. Depending on your needs and budget, staging can range from simple touch-ups to more extensive setups.

How Does It Help Me Sell My House?

Studies show good staging does have an impact on your sales. Staging your house well can help you attract more attention from buyers, which ultimately helps it sell faster and maybe for a higher price than an unstaged home (see visual):

What Are My Staging Options?

Now that you see the value let’s think through your options. The most common is leaning on your agent for their expert advice. They know what buyers like because they’re always in showings and hear that feedback first-hand. That expertise is crucial to getting your house market-ready. Basic staging with an agent usually means they give you insight into how you should:

• Declutter and depersonalize by removing photos and personal items
• Arrange your furniture to improve the room’s flow and make it feel bigger
• Add plants, move art, or re-arrange other accessories

If your house needs more hands-on attention, full-service staging is another option. This is when you hire a professional or company to make recommendations and do the work for you. This route is more involved, and it can be more costly, too. It can include renting furniture and decor to transform a space more fully.

How Do I Know Which One To Pick?

Not sure which one you need? You don’t have to figure that out on your own. Your real estate agent will help determine what level of staging will impact your house and market the most.

They can help you decide if professional staging is worth the investment or if you can knock it out with their advice alone. And just so you know, here are some of the factors an agent will look at to figure that out:

• Market Conditions: If the market is slower, investing heavily in staging can make your home look move-in ready and attractive to buyers who may otherwise be hesitant. However, if your local market is very active and homes are selling fast, you may be able to get by by doing less.
• Your Home’s Condition: If your home is vacant or has a unique layout, using a professional stager who can bring in the right furniture and accessories may help buyers truly visualize its full potential.
• Your Budget: Talk to your agent to get an idea of staging costs in your area. These can be the difference between your house selling and sitting. But if your budget is tight or your home only needs minor updates, your real estate agent can help you think outside the box by suggesting simple DIY staging tips to make your home look its best.

Bottom Line

Proper staging can make your house much more attractive to buyers, but it’s not a one-size-fits-all solution, and every home shines differently. Let’s discuss what your home needs to stand out and sell for top dollar.

This is when many people take a moment to reflect and set their goals for this year. And as you picture what you want your 2025 to look like, one thing that may pop into your mind is the vision of you in a new home. But how do you get there? And where do you start?

Here’s some advice that can help you get the ball rolling.

Focus on Your Why

To lay the foundation, you need to focus on your why. While the dollars and cents are important, so is the driving force behind your desire to move. Maybe you need more space for a growing family, want to sell so you can downsize, or are finally ready to buy your first home. Whatever your reason, it’s important to keep it front and center.

Your why is what helps you stay focused. Share your motivation with your agent, and they’ll use their expertise to help support that goal, no matter what the market looks like. With a great agent by your side, you’ll have someone to guide you, problem-solve, and keep you moving forward until you can check that goal off your to-do list.

Get Clear on What You Need

Then, it’s time to figure out what your next home needs to have. How many bedrooms do you need? If you don’t have a designated home office, is that a deal-breaker? What about a big fenced-in backyard? Knowing your must-haves and nice-to-haves makes the search a lot smoother.

Since affordability is still tight, having a clear idea of your essential items is important. Maybe you can flex a bit on location if it’s got everything else you’re looking for. Go over those essential items with your agent, and they’ll help you focus on the homes that check the boxes that matter most while staying within your price range.

Know Your Numbers

Before you jump in, take a look at your finances. How much have you saved? What monthly payment feels comfortable? Getting clear on your budget early will help you know what’s possible.

The best way to do this is by partnering with trusted real estate professionals, like local agents and lenders. They’ll help you:

• Plan for your down payment and look into down payment assistance programs
• Understand the equity you have in your current home and how you can use it to fuel your next move if you’re selling
• Get pre-approved for a mortgage so you know what you can borrow

Lean on a Pro To Guide You

It can be hard to know where to start, but you don’t have to do it alone. A real estate agent knows what you need to do to get ready to buy or sell and how to navigate the process, and can answer your questions every step of the way. As Bankrate puts it:

“. . . now more than ever, it’s smart to lean on the guidance of an experienced local real estate agent. If you want to enter the housing market in 2025, whether as a buyer or a seller, let a pro lead the way for you.”

Remember, buying or selling is a significant milestone and a great goal for this year. You’ll feel confident and ready to take on the market with the right expert on your team.

Bottom Line

If buying or selling a home is part of your goals for 2025, now’s the time to get started. Focus on your why, know what you need, and connect with trusted pros to make it happen. Let’s team up and make this the year you accomplish your real estate resolutions.

Planning to buy a home soon? Why not go for something brand-new? Because data shows many more buyers are seeing the appeal of new home construction these days, you may find out it’s what you want, too.

The National Association of Realtors (NAR) explains that newly built homes accounted for 15% of all homes sold last year. That’s a significant increase and is the highest percentage in 17 years (see graph below):

NAR surveyed recent buyers to get a closer look at why so many people are opting for a brand-new home. And here are the top reasons why new builds gained so much popularity (see graph below):

 Avoiding Renovations or Problems with Plumbing or Electricity (42%)

According to buyers, the first benefit is the peace of mind that comes with getting everything brand-new. Because, let’s face it, buying a home right now is pricey. And with inflation also putting a pinch on your wallet, you want to do everything you can to cut down on additional costs. Enter new builds.

A home that was just built is less likely to have unexpected repairs, which means less maintenance you’ll need to budget for upfront. Plus, since many builders include warranties on their homes, that’s an added layer of protection for your wallet on some of the home’s major systems.

Ability To Choose and Customize Design Features (27%)

You may also personalize parts of the build to your unique tastes. That can be as small as which knobs go on the cabinets and which light fixture goes in the dining room to as big as floor plans and siding color. So, if you’re not finding a home you like, it may be time to build one.

The Amenities of New Home Construction Communities (25%)New development offers amenities like parks, pools, fitness centers, and community spaces. These features could help you feel more connected to your neighborhood and be a great lifestyle perk.

Lack of Inventory of Previously Owned Homes (15%)

Since the supply of existing homes (homes that were previously lived in) is still lower than the norm, more people are asking their agents if they can see what builders have available – and builders aren’t disappointed. New builds make up a more significant portion of the homes available for sale than the norm. So, checking out these homes can open up your pool of options. And don’t worry – builders are not overbuilding. They’re just catching up after years of underbuilding.

Energy Efficiency (14%)

Not to mention, newly built homes usually have the latest energy-efficient materials and technologies. This feels good and can lead to lower utility bills and a reduced environmental footprint. In a U.S. News Real Estate interview with Kevin Morrow, Senior Program Manager at the National Association of Home Builders (NAHB), this topic came up:

“The more energy-efficient mechanics of the house also help reduce utility bills for new home buyers . . . Newly-constructed homes often include green systems and appliances—like high efficiency stoves, refrigerators, washing machines, water heaters, furnaces, or air conditioning units—that homes built years ago might not.”

Smart Home Features (11%)

The integration of innovative technologies is last on this list. Tech-savvy buyers often want the latest advancements, and new home construction usually delivers.

The Importance of Using Your Agent

Newly built homes are becoming a top pick for buyers, and it’s easy to see why. If you’re feeling motivated to see what’s out there, remember you must have your real estate agent.

Builder contracts often have some complex terms and complicated fine print. If you bring your agent, you’ll have someone to advocate for you, make sure you’re getting quality construction, and guide you through the process from start to finish.

Bottom Line

Imagine skipping the hassle of renovations and having the freedom to choose the exact design features you want. If this sounds good to you, let’s connect to make sure you have an agent to help you negotiate with the builder so you can confidently buy a new home.