If you’re planning to buy a home, knowing what to budget for and how to save may sound intimidating – but it doesn’t have to be. One way to ease those concerns is to make sure you understand some of the costs you may encounter up front. And to do that, always turn to trusted real estate professionals. They can help you set a plan and take a strategic look at your budget and your process before you even get started.

Here are just a few things experts say you should be thinking about.

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? While every buyer’s situation is different, there’s a common misconception that putting 20% of the purchase price down 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.”

To understand your options, partner with trusted real estate professionals to go over the various loan types, down payment assistance programs, and what each one requires. The more you know ahead of time, the easier the process will be.

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:

“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 Realtor.com, 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’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.”

Keep in mind, an EMD isn’t required, and it doesn’t guarantee your offer will be accepted. It’s important to work with a real estate advisor 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.

$400-$500K

Ever wonder what goes into an appraisal? Need to know what your home is worth, or interested in buying soon? Schedule a free seller or buyer consultation now!

COOKE COUNTY MARKET MINUTE $400K to $500K!
Today, we're going to look at what you can buy, and what has been bought between $400,000 and $500,000. Next time, we will look at $500,000 to $750,000 and continue progressing through the housing market. These updates take us through the Cooke County housing market and some areas next to Cooke County, then onto land, multi-family!

4 homes sold in the last 30 days and there are 29 available which gives us 7.25 months of inventory. There are 3 under contract, so there is positive inventory movement if you're trying to sell a home in this price range.

On the market currently:
29 Active listings averaging 3/3 built in 2014 on 1.354 acres with 2,257 square feet. The average asking price is $204.99 per sq foot ($455K) and they have been on the market an average of 74 days.

3 homes are under contract.
4 homes sold in the last 30 days averaging 4/2/2 built in 2008 on 2.292 acres and 2,008 square feet. The average sales price was $228.23 per square foot ($446K) and were on the market for an average of 125 days.
0 homes sold last year in the same time frame

11261 Kingfisher Dr, Thackerville, OK 73459

    Congrats to all! 

When it comes to updating your home before selling, there are several cost-effective ways to make a big impact without breaking the bank. Here are some ideas for you:

1. Fresh Coat of Paint: One of the most affordable and impactful updates you can make is giving your walls a fresh coat of paint. Stick with neutral colors that appeal to a wide range of buyers.
2. Declutter and Depersonalize: Clear out any unnecessary items and personal belongings to create a clean and spacious feel. This allows potential buyers to envision themselves living in the space.
3. Deep Cleaning: A thorough cleaning can make a significant difference in how your home presents itself. Pay attention to details like windows, carpets, grout, and fixtures.
4. Curb Appeal: First impressions matter, so spruce up your home's exterior by tidying up the landscaping, adding fresh mulch or flowers, and ensuring the front door is inviting.
5. Lighting Upgrades: Replace outdated light fixtures with more modern ones to enhance the overall ambiance of your home. Consider energy-efficient options for long-term savings.
6. Minor Kitchen Updates: Instead of a full remodel, focus on smaller updates like painting cabinets, replacing hardware, or updating light fixtures to give your kitchen a refreshed look.
7. Bathroom Refresh: Simple updates such as replacing faucets, recaulking the bathtub/shower, or updating the vanity mirror can go a long way in improving the appeal of your bathrooms.

These cost-effective updates can help improve the overall presentation and marketability of your home without breaking the bank. Remember to prioritize areas that potential buyers tend to pay close attention to such as kitchens, bathrooms, and overall cleanliness.

If you need more personalized advice or guidance for updating your specific property before selling, consider consulting with a local real estate agent or professional home stager who can provide tailored recommendations.