When buying a home, there are several upfront costs to consider beyond just the mortgage. Plan ahead and understand what to save:

• Down payment: Your largest expense, typically 5-20% of the home’s purchase price. If you can manage a 20% down payment, you’ll avoid the cost of private mortgage insurance (PMI), which can save you hundreds of dollars per year.
• Closing costs: These can total between 2-5% of the home’s purchase price and include:
  
  
• Loan Origination Fees (the cost of processing your application)
• Legal Fees
• Inspection, appraisal, and title search fees
• Escrow deposits
• Title insurance fees
  
  Some closing costs can be rolled into your mortgage or negotiated with the seller.
• Cash Reserves: Many lenders require that you have at least two months’ worth of principal, interest, taxes, and insurance (PITI) payments to show you can continue to make payments in case of an emergency.
• Moving & utility costs: Whether you’re hiring a moving company or renting a U-Haul, moving expenses add up. You may also need to pay deposits for activating utilities at your new house.
• Home maintenance & repairs: A good rule of thumb is to set aside 1-3% of your home’s value each year for maintenance costs.