Posts in category 'Budgeting Costs'

Saving for a down payment is a key step in the homebuying process, and it's not the only piece you need to include in your budget. Another factor that's important to plan for is the closing costs required to obtain a mortgage.

What Are Closing Costs?

According to Trulia,

"When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more."

For those who buy a $250,000 home, for example, that amount could be between $5,000 and $12,500 in closing fees. Keep in mind, if you're in the market for a home above...

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It's the most wonderful time of the year! No, it's not Christmas, it's tax season! Whether you get a few hundred or few thousand dollars back, you should plan to use your tax return in ways that will greatly benefit your future.

1. Start or increase your emergency fund. Without any kind of emergency fund, one major expense can be detrimental to your financial stability. Most financial experts say that your emergency fund should consist of anywhere from three to eight months' worth of savings and setting aside your tax refund could be a significant step in reaching this goal.

2. If you have high-interest debts, making an extra payment toward the principal with your tax refund money could help cut down the total interest you pay over time. There are various debt-elimination theories and programs, but most all of them recommend getting rid of...

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One of the most important things you need to do before buying a house, is establish a budget. You need to know how much you can afford and how much the bank is willing to give you, but that number should include more than just the cost of the house. Here are some common costs that are overlooked when determining a budget.

Closing costs: Usually part of the negotiation, closing costs can be up to five percent of the purchase price, sometimes equaling a couple extra thousand dollars. More often than not, the seller will pay the closing costs, but if not, keep some of the budget available to cover those charges.

Renovations: Unless you are building a house from scratch, you won't find everything that you are looking for. When purchasing a house, make sure to leave room for possible renova...

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