Real Estate

Take the Fear Out of Saving for a Home

Keeping Current Matters has provided insight into overcoming the fear of saving for a home. Whether you’re a first-time home buyer or planning your next purchase, saving and budgeting for this large purchase can seem stressful.

The scariest thing in the fall should be Halloween, not the fall market! Let’s dive into taking the fear out of saving for a home together.

Take the Fear Out of Budgeting

The first step to overcoming this fear would be to make a plan. You cannot make a plan without understanding some potential costs you will encounter as a home buyer.

And to do that, turn to trusted real estate professionals. They can help you plan your finances and prepare your budget.

Here are just a few costs experts say you can expect.

  1. Down Payment – Saving for your down payment is likely top of mind as you set out to buy a home. But do you know how much you’ll need to save? While each situation is different, there’s a common misconception that putting 20% down toward your purchase is required. An article from the Mortgage Reports explains why that’s not always the case.

” 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”

Keeping Current Matters

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

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.

The best way to understand what you’ll need at the closing table is to work with a trusted lender. They can provide you with answers to the questions you might have.

3. Earnest Money Deposit– If you want to cover all your bases, you can also consider saving for an earnest money deposit (EMD). An EMD is money you pay as a show of good faith when you make an offer on a house. According to, it’s usually between 1% and 2% of the total home price.

This deposit works like a credit. It’s not an added expense – it’s paying a portion of your costs upfront. You’re using some of the money you already saved for your purchase to show the seller you’re committed and serious about their house. 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.”


Bottom Line

Budgeting for your home purchase doesn’t have to be scary. Let’s connect so you’ll have an expert on your side to answer any questions you have along the way.

Subscribe to my Newsletter

Be the first to receive the latest buzz on upcoming contests & more!