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Buying a home is one of the most exciting—and financially significant—steps many people take in life. While most buyers focus on the down payment and monthly mortgage, it’s crucial to plan for another major expense: closing costs.
What Are Closing Costs? Closing costs are the fees and expenses you pay to finalize your home purchase. These costs are separate from your down payment and are typically due on the day you close on your new home. How Much Are Closing Costs? Closing costs usually range from 2% to 5% of the home’s purchase price. So, if you're buying a $300,000 home, your closing costs could be anywhere from $6,000 to $15,000. The exact amount depends on your loan type, location, and the specifics of your transaction. What Do Closing Costs Include? Here’s a breakdown of common items included in closing costs:
Who Pays Closing Costs? In most cases, buyers pay the majority of closing costs, but sellers also have fees, especially if they're covering part of the buyer’s costs as part of the negotiation. In some markets, buyers may be able to ask for a seller concession to help reduce the financial burden. Can You Reduce Closing Costs? Yes! Here are a few tips:
Final Thoughts Closing costs can be a surprise if you're not prepared, but with the right planning and a trusted real estate professional on your side, you’ll have a clear picture of what to expect. Understanding these costs in advance ensures there are no last-minute surprises when you get to the closing table—and helps you enjoy your new home with confidence.
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Are HOA fees taking a toll on your wallet? In this video, we explore the pros and cons of owning a home in a neighborhood with a Homeowners Association (HOA). From manicured lawns to strict rules, we weigh the benefits against the costs to help you decide if the extra expense is really worth it. Whether you're a first-time homebuyer or a seasoned homeowner, this video is for anyone considering buying a property in an HOA community. So, is owning a home in an HOA really worth the cost? Watch to find out! Buying a home is one of the biggest financial milestones in life, and it all starts with saving up for that down payment and other associated costs. Whether you're just beginning to think about homeownership or actively planning your purchase, the sooner you start saving, the better. Here are some practical steps to help you build your savings and get closer to the keys of your new home.
1. Set a Clear Savings Goal Start by understanding how much you need to save. Most lenders recommend putting down at least 5% to 20% of the home's purchase price. For example, on a $250,000 home, a 10% down payment would be $25,000. Don’t forget to factor in closing costs, moving expenses, and a cushion for any initial repairs or furnishings. 2. Create a Budget and Track Expenses Building a budget is essential. Look at your current income and expenses to see where your money is going. Tracking your spending will help you identify areas where you can cut back. Even small changes like reducing takeout meals or canceling unused subscriptions can free up cash for savings. 3. Open a Dedicated Savings Account Keeping your home savings separate from your everyday spending account can reduce the temptation to dip into your funds. Look for a high-yield savings account to earn more interest while you save. 4. Automate Your Savings Set up automatic transfers to your savings account on payday. Treat your savings like a monthly bill that must be paid. This ensures consistency and helps build your balance without extra thought. 5. Cut Unnecessary Expenses Be honest about your spending habits. Can you downsize your car? Cut back on vacations? Shop more strategically? Redirecting those savings can accelerate your path to homeownership. 6. Take on a Side Hustle Earning extra income can give your savings a big boost. Whether it's freelancing, rideshare driving, or selling unused items online, every dollar you earn can get you closer to your goal. 7. Use Windfalls Wisely Tax refunds, bonuses, or financial gifts can significantly impact your savings. Instead of spending these extras, deposit them directly into your home fund. 8. Explore First-Time Homebuyer Programs Many states and communities offer assistance programs that help first-time buyers with down payments, closing costs, or low-interest loans. Research what's available in your area—it could shorten your savings timeline. Final Thoughts Saving for a home may feel daunting at first, but with the right plan and discipline, it’s absolutely achievable. The key is to start early, stay focused, and make your savings a priority. Every step you take gets you one step closer to owning a place to call your own. Whether you're planning to buy a home, apply for a car loan, or simply want financial stability, a good credit score is essential. For first-time buyers especially, building and maintaining strong credit can open doors to better loan terms, lower interest rates, and more financial opportunities. Here’s how to start building credit the right way.
1. Understand What Credit Is and Why It Matters Credit is your financial reputation. It tells lenders how responsible you are with borrowing and repaying money. Your credit score is based on several factors, including:
2. Start With a Secured Credit Card If you're new to credit, a secured credit card is a great first step. This type of card requires a cash deposit that acts as your credit limit. Use it responsibly and pay the balance off on time each month to build positive credit history. Tip: Keep your balance below 30% of the credit limit to show you're using credit wisely. 3. Become an Authorized User Ask a trusted family member (with good credit) to add you as an authorized user on one of their credit cards. You don’t even have to use the card—just being associated with a well-managed account can help you establish credit. 4. Make Payments On Time—Every Time Payment history makes up the largest portion of your credit score. Set up automatic payments or reminders so you never miss a due date. Even one late payment can hurt your score. 5. Use Credit Responsibly Building credit isn’t about how much you borrow—it's about how you manage it. Avoid maxing out your credit cards and try to pay more than the minimum balance whenever possible. 6. Apply for Credit Sparingly Too many hard inquiries (like applying for multiple cards or loans in a short period) can lower your score. Only apply when necessary, and do your research beforehand to choose the best option. 7. Monitor Your Credit Regularly Use free credit monitoring services or request a free credit report once a year at AnnualCreditReport.com. This helps you track your progress and catch errors or signs of identity theft early. Final Thought Building credit takes time, but every smart move you make adds up. Start small, be consistent, and keep your financial goals in focus. If you're planning to buy a home in the future, strong credit will help you qualify for better mortgage rates and more flexible loan options. Are you torn between investing in the stock market or real estate? In this video, we'll weigh the benefits and drawbacks of each option, helping you make an informed decision that aligns with your financial goals. Whether you're a seasoned investor or just starting out, this video is perfect for anyone looking to build wealth and secure their financial future. From diversification and risk management to cash flow and long-term appreciation, we'll cover it all. So, which is better - stocks or real estate? Let's find out! Buying a home is one of the most exciting—and significant—investments you’ll ever make. Whether you’re a first-time buyer or moving into your next home, the process can feel overwhelming without the right guidance. As a real estate professional, my goal is to make sure you feel informed, confident, and prepared every step of the way.
1. Know What You Can Afford Before you start browsing listings, it’s crucial to know your budget. Speak with a mortgage lender to get pre-approved and understand how much home you can realistically afford. A pre-approval also strengthens your offer once you find the right property. 2. Make a List of Must-Haves Identify what you need versus what you want. Do you need a certain number of bedrooms? Is a big backyard or walkable neighborhood important to you? Knowing your priorities will help you focus your search and avoid wasting time on homes that don’t fit your lifestyle. 3. Work With a Local Real Estate Agent A knowledgeable real estate agent is your greatest asset. We have access to the latest listings, understand local market trends, and can negotiate on your behalf. We’ll also guide you through inspections, paperwork, and closing day so nothing gets missed. 4. Be Ready to Act Quickly In today’s competitive market, the best homes don’t last long. If you find a property you love, be prepared to make a strong, timely offer. Your agent will help craft a competitive offer that gives you the best chance of acceptance. 5. Don’t Skip the Inspection A home inspection is a crucial step. It uncovers any potential issues with the property—big or small—so you’re not caught off guard after moving in. Depending on the results, you may want to renegotiate the terms or ask the seller to make repairs. 6. Understand the Closing Process Once your offer is accepted, the home enters escrow. During this time, you’ll finalize your loan, complete inspections, and review documents. Your agent and lender will walk you through each step until it’s time to close and get the keys to your new home. Thinking About Buying a Home? Let's Talk. As a dedicated real estate agent in Southeast Michigan, I’m here to simplify the home buying journey and help you find the perfect place to call home. Reach out today to start the conversation—you’re closer to your new home than you think! Connect with Jason Gelios here As a real estate agent, one of the most exciting experiences I get to share with clients is helping them purchase a newly built home. There’s something incredibly special about walking into a home where no one has ever lived before—where every fixture, finish, and feature is brand new and designed to suit your personal tastes.
If you’re considering buying a home, here are a few compelling reasons why a new construction might be the right path for you: 1. Customization Options Many builders offer the opportunity to personalize your home during the construction phase. From cabinetry and countertops to flooring and paint colors, you can often choose the finishes that reflect your style—something that's not always possible with resale homes. 2. Energy Efficiency New homes are built with the latest materials and technologies, meaning they’re often far more energy-efficient than older homes. Features like improved insulation, double- or triple-pane windows, and smart home systems help reduce utility bills and create a more comfortable living environment. 3. Lower Maintenance Costs Because everything is new—from the roof to the HVAC system—your maintenance and repair costs will likely be much lower than with an older home. Most builders also include warranties that cover various systems and structural elements, giving you peace of mind in the first few years. 4. Modern Design and Layouts Today’s new builds are designed for the way people live now. Open-concept floor plans, larger kitchens, walk-in closets, and flex spaces for home offices or gyms are standard features in many new homes. 5. Community Amenities Many new developments are master-planned communities that offer shared amenities like parks, walking trails, playgrounds, pools, and clubhouses. These features can enhance your lifestyle and even increase the resale value of your home. 6. Incentives from Builders Builders frequently offer incentives such as closing cost assistance, upgrades, or financing deals when you use their preferred lender. These can make a big difference in your bottom line. Are you tired of not having the right tools for the job? As a homeowner, it's essential to have the necessary tools to tackle any task that comes your way. In this video, we'll be covering the must-have tools that every homeowner needs to know about. From basic DIY projects to more complex renovations, we've got you covered. Whether you're a seasoned DIY expert or just starting out, this video is perfect for anyone looking to upgrade their toolkit. So, what are you waiting for? Watch now and discover the essential tools every homeowner needs to succeed! By: HouseLogic
Sign that paperwork. Write those checks. Get those keys! The closing. It all comes down to this. The grand finale. Once you have the keys, the house is yours. (Cue: Air horn sound!) Nice work getting this far. You’re almost a homeowner. Let’s run through some questions you may have as you cross the finish line. What Does ‘Closing’ Mean? The close, or settlement, is when you sign the final ownership and insurance paperwork and get the keys to your new home. The closing process technically begins when you’ve signed a purchase and sale agreement. That agreement should specify a closing date. From the signing date to the closing date typically takes 30 to 45 days. During this time, purchasing funds are held in escrow, where your money is safe until the deal is officially done. What’s a Closing Disclosure? Lenders must provide borrowers with a closing disclosure, or CD, at least three business days before settlement. This form is a statement of your final loan terms and closing costs. You have three days to review the CD to compare it to the loan estimate you received shortly after you applied for the loan. If you need a refresher on loan estimates, you can view a sample version. The point of this formal review process is to reduce or minimize surprises at the closing table. If there’s a significant discrepancy between the loan estimate and the CD, notify your lender and title company immediately. Depending on what the underlying issue is, the closing has to stop and a new closing disclosure must be sent out with a new three-business-day review period. The LE includes a couple of items that can’t change by the time you get the CD — namely interest rate and lender fees. Some items can change by only 10%. (Fees paid to local government to record the mortgage might be one.) Others, like prepaid interest, can change without limit, because they can’t be predicted at the start of the loan process. Prepare for Closing Buy a Home: Step-by-Step When Will the Final Walk-Through Happen? Most real estate sale contracts allow the buyer to walk through the home within 24 hours of settlement to check the property’s condition. During this final inspection, which usually takes about an hour, you and your agent will make sure any repair work the seller agreed to make has been completed. During the walk-through, you’ll also double-check that everything in the house is in good working order. Be sure to:
If anything is amiss, your agent will contact the listing agent and, in most cases, negotiate to get the seller to compensate you at closing for the costs of fixing the problems yourself. Worst-case scenario: You have to delay closing to resolve problems. If that unlikely event happens, your agent will help you address the issue. Who’s Invited to the Closing? Certain people will be there. Who, exactly, depends on your state. Typically, you’ll be joined by:
Nonetheless, as the home buyer, you’ll have to sign what might seem like a mountain of paperwork — including the deed of trust and the promissory note (promising the lender you’ll pay back the loan). That cramp in your wrist will be worth it once everything is done. How Much Will I Pay for Closing Costs? If you’ve heard people vent frustration with the home buying process, you’ve likely also heard complaints about unexpected costs at closing. Let’s unpack what you should expect so you’re not surprised, too. Closing costs can vary widely by location and your home’s purchase price. Costs are split between you and the seller, but as the buyer, you’ll cover the lion’s share. You can generally expect your closing costs to be 3% to 4% of the home’s sales price. So, on a $300,000 home, you can pay anywhere from $9,000 to $12,000 in closing costs. (Meanwhile, the seller typically pays closing costs of 1% to 3% of the sales price.) You can try to predict closing costs with calculators like Nerdwallet’s, which lets you plug in your mortgage details to get a rough estimate of what your costs will be. Closing fees often include (but are not limited to):
What Should I Bring? (Other than Champagne?) At the closing you should have:
What Is Title Insurance, and Why Do I Need It? Every lender requires borrowers to purchase title insurance, a policy that protects you and the lender from outside claims of ownership of the property. Wait, you may be asking, some random person could show up and claim they own the house? Sounds crazy, but it happens. Let’s say a previous owner didn’t pay all of their property taxes. Because those taxes remain against the property, the taxing entity could potentially take your home if you don’t have a “clean” title. Title insurance also protects you from ownership claims over liens, fraudulent claims from previous owners, clerical problems in courthouse documents, and forged signatures. The title company will comprehensively search deeds, wills, trusts, and public records to trace the property’s history and verify that you’re becoming the rightful sole owner of the property. Typically, lenders have a preferred title company they work with, but ultimately the buyer decides which title company to use. Your agent could offer a few referrals. Title insurance comes in two forms:
What If There are Last-Minute Issues? Should I Panic? For your loan to be approved, it has to go through underwriting. The underwriter’s job is to validate all of your financials, confirming that your income, credit, and debt haven’t changed since you were pre-approved for the loan. The underwriter will also review the property’s characteristics and appraisal. If everything checks out, your mortgage will be approved. If something goes wrong during underwriting though, you’ll have to address the problem before you can close on the home. Let’s say your credit score dropped because you recently purchased a car with an auto loan, or maxed out your credit cards. This isn’t necessarily dire, but you may need to delay closing as you work with your lender to take steps to raise your score. (For that reason, it’s a good idea to hold off on big purchases, avoid overusing a credit line, or doing anything that could result in a credit inquiry until after the closing.) OK — Can I Celebrate Now? If you’ve made it through close — yes! Once you’ve climbed that mountain of paperwork and you have those keys in hand, you now officially, finally own a home. Congratulations! You put in a lot of hard work, including building relationships with your agent, your lender, and other experts along the way. Now it’s time to start investing in other relationships. Like with your new neighbors. By: HouseLogic
Check out these captivating outdoor fireplace ideas that will transform your outdoor space into a cozy haven. There’s nothing like gathering around a fire with your friends and family on a chilly evening. The right outdoor fireplace warms an outdoor area and is a gathering spot to make lasting memories. If you’ve been considering getting an outdoor fireplace, here are some ideas to help you get started. 4 Outdoor Fireplace Ideas Outdoor fireplaces come in many shapes, sizes, and materials. Most homeowners want one that fits the style of their home and is compatible with their outdoor space. Style compatibility affects your design choice, the materials you choose, and the size and placement of the outdoor fireplace. Here are a few styles to consider. #1 Traditional Outdoor Fireplaces A traditional outdoor fireplace made of brick or stone can work well with a home that has exterior brick or stone elements. Matching the elements and tones in your fireplace to your home’s exterior helps create a cohesive look. Traditional materials like brick or stone are also a great option for homeowners seeking a classic wood-burning fireplace. If the masonry is sound, stone or brick fireplaces generally won’t require much maintenance. If you choose this option, consider having a professional check your fireplace once a year to keep it in good shape. #2 Modern Outdoor Fireplaces A modern, minimal outdoor fireplace can complement a home with a clean, modern look. Combine materials like stucco, stone, or concrete with a pared-back, sleek design. A gas fireplace is relatively low-maintenance option that suits the look and feel of a contemporary home. It also helps keep your patio warm and inviting well after the summer months. Apart from general masonry checks and regular cleaning, these fireplaces don’t usually require much upkeep. #3 Sustainable Outdoor Fireplaces Homeowners seeking sustainability might consider gas or electric fireplaces. If these aren’t for you, other sustainable fuel options, such as ethanol or wood pellets, produce less smoke and ash. As for exterior materials, explore locally sourced stone, sustainably sourced wood, or recycled metal. #4 Customized Outdoor Fireplaces If your home incorporates some unique design elements that are difficult to replicate, you might check into an outdoor fireplace built to your specifications. You can choose from many materials, including steel, concrete, stone, and wood. Qualified contractors and designers can help you plan a custom fireplace that suits your needs. Advantages of Outdoor Fireplaces Building an outdoor fireplace may be a considerable undertaking, but it offers some excellent benefits. Outdoor Fireplaces Can Add CharacterAn exterior feature like an outdoor fireplace adds visual interest to your home and helps it stand out. It also helps family and guests enjoy outdoor entertainment more. Outdoor Fireplaces Increase Joy Don’t underestimate a fire feature’s role in making your home a fun and joyful place. Homeowners who added an outdoor fire feature reported a joy score of 9.7 out of 10 after finishing the project, according to the National Association of REALTORS® “2023 Remodeling Impact Report: Outdoor Features.” Outdoor Fireplaces Can Beautify Your Space An outdoor fireplace can be a great focal point in your outdoor patio, backyard, or deck. If you’ve long thought your patio lacked something special, a well-designed outdoor fireplace may give you the refresh you’ve been looking for. Before You Build Before deciding on the project, consider some of the issues and requirements. Safety Matters In most cases, outdoor fireplaces are a safe addition to your home. But if you have pets or young children, you’ll need to implement strict fire safety rules about keeping a safe distance from the fire. Make sure your outdoor fireplace is a safe distance from your home and other structures as required by the local code. And, before starting a fire, check with your local forest service office to find out about burn authorizations or fire restrictions. Budget Concerns When you compare the costs to other features like fire pits, building a fireplace can be pricey. The average cost to build a firepit is around $850, though the range is $200 to $5,000. By comparison, the average cost to build an outdoor fireplace is roughly $3,000, with prices ranging from $1,500 to $9000. Homeowners on a strict budget may want to consider an outdoor fire pit. Maintenance Needs While gas and electric fireplaces require professional attention, traditional wood fireplaces require regular cleaning. Even with a small outdoor fireplace, this can be time-consuming and tedious, especially if you have a busy life. But what kinds of maintenance does an outdoor fireplace require? Take a look at the Cleaning and Maintenance section. Placement Consideration Your outdoor fireplace’s location will vary based on building codes in your area, so look up local requirements before starting work on your project. A good rule of thumb is your fireplace should be at least 10 to 15 feet away from your home, property line, and any other structures or flammable materials. You’ll also want to place your outdoor fireplace so it doesn’t face prevailing winds or obstruct any views. Fuel Options Many factors can influence fuel choice including your desire for convenience, your aesthetic preferences, and your budget. Consider the pros and cons of a few fuel options.
Regular cleaning and light care keep your outdoor fireplace neat and ready-for-use. Here are some important tips to bear in mind:
You can choose from many materials and outdoor fireplace designs. The perfect match can complement your home and landscaping to create a balanced and well-coordinated result. The right outdoor fireplace can transform your deck or patio and make the area more inviting and comfortable, and add character and personality to your outdoor space. Look for an experienced contractor who uses high-quality materials and can match the outdoor fireplace to your vision while meeting local regulations and requirements. |
AuthorJason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the books 'Think like a REALTOR®' and 'Beating The Force Of Average', Creator of The AskJasonGelios Real Estate Show and Expert Media Contributor to media outlets across the country. Archives
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