MASTERING YOUR MONEY: What expenses to be prepared for when buying a home

• Video shows Nicole Johnson, Senior Loan Officer (NMLS #657951) with M3 Mortgage and The Mortgage Chicks, sharing her expertise on budgeting when buying a home.
• The Jackson Area Association of Realtors says the average cost of a home in Jackson County was $219,000 in April.
• Some of her tips include getting pre-approved, checking your credit, and being prepared for some unexpected, out-of-pocket expenses.

(The following is a transcription of the full broadcast story)

Buying a home can be intimidating, so I caught up with Senior Loan Officer, Nicole Johnson, to talk about how to prepare your budget when buying a home for the first time.

"There's a lot of moving pieces when you are purchasing a home, and once you have a home and you've got an accepted purchase agreement, things start moving extremely quickly," says Johnson. According to the Jackson Area Association of Realtors, the median sales price for a single-family home in Jackson County was $219,000 in April 2024.

Johnson says, when taking the first steps to buy a home, neighbors should:

1. Start saving early
2. Get pre-approved right away
3. Have a good handle on their credit, because there may be some surprise costs you didn't budget for...

Johnson continues, "Upfront costs that you should be prepared to have to be thrown your way during the process is your earnest money. That's collected by your realtor when you have that accepted purchase agreement. A home inspection, is not required, but highly, highly recommended. Then, you also need to have some money for your appraisal." Johnson says these out-of-pocket expenses can range anywhere from $1,500 to $2,000, but that's not all.

"You might want to be prepared for paying for closing costs, as well. In addition to the out-of-pocket expenses that we talked about. That's why it's so important to start that pre-approval process early on, so you have a really good gauge of what kind of cash at close you would be needing." So if the time comes for you to buy a home, you and your budget can both be prepared.

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