First-Time Buyers: Budgeting for More Than the Down Payment

When most first-time buyers think about saving, they think about the down payment. That is a big piece, but it is not the only one.

Earnest money

In Arizona, earnest money is usually deposited with escrow soon after your offer is accepted. It shows good faith and goes toward your purchase at closing.

Inspections

A general home inspection, and maybe a pool, roof, or termite inspection. These are paid during your inspection period and are worth every penny.

Appraisal

Your lender will order an appraisal, and you usually pay for it.

Closing costs

Lender fees, title, escrow, prepaid taxes and insurance. Ask your lender for a Loan Estimate early so you know the number.

Moving and setup

Movers, utility deposits, a new lock set, and that first trip to the hardware store. (There is always a first trip. And a second.)

A little cushion

Try to keep some savings after closing. Homes have surprises.

Good news

Sellers can sometimes contribute toward buyer closing costs, and there are down payment assistance programs in Arizona. Ask your lender what you may qualify for.

Which of these costs surprised you the most? Tell me in the comments. I read every one.

Thinking about buying or selling in the Valley? Call or text me at 480-572-2159, or visit lovingazhomes.com. First-time buyer? Watch my free webinar at lovingazhomes.com/first-time-buyers.

Tina Marie Miller, REALTOR®, DeLex Realty. Information is general and not legal, tax, or lending advice. Programs and amenities can change; please verify details.

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