Saving for a Home in 2024? 4 Things to Know

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Real Estate

What You Need To Know About Saving for a Home in 2024

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, call me.  I will help you set a plan and take a strategic look at your budget and your process before you even get started.  I also have expert mortgage lenders to advise you as well.

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, call me & I will set you up with an expert 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 call me now so I can get you the 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, 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. 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.

4.  Due Digital Deposit

Due diligence money is a fee that buyers give at the time they make an offer on a home. In essence, it is the buyer’s good faith payment to the seller. During the due diligence period (typically round 30 days), the seller pulls the home off the market while the buyer completes inspections. The buyer has this time to review inspections reports and HOA bylaws and rules, negotiate repairs, and take any additional action needed to make a final decision as to whether to move forward with the purchase. The purpose of due diligence money, then, is to compensate the seller for the period for which he or she removed the home from the market. When a seller pulls the house from the market and the prospective buyer subsequently decides not to purchase the home, the seller could have missed out on another buyer during the time the home was off the market. Due diligence money is a good faith acknowledgement to show the buyer’s intent to purchase the home while offering the seller compensation should the deal fall through.  IF the buyer decides not to move forward, the seller keeps the Due Diligence Money.  If the purchase goes to closure, that amount is credited to the seller at closing.  It is non-refundable.

Bottom Line
When buying a home, being informed about what to save for is key. Let’s connect so you’ll have an expert on your side to answer any questions you have along the way.