A well-planned budget for first-time homeowners should focus on two goals: affording the home and maintaining financial stability. Key expenses include the home price, down payment (typically at least 3%), closing costs, moving costs, and ongoing expenses like mortgage payments, property taxes, homeowners insurance, and maintenance (about 1% of the home's price annually). It's advisable to save in high-yield savings accounts or money market accounts for accessibility and to minimize risk. Be prepared for surprise costs like closing fees and escrow requirements.
Continue to full article
