http://pkrealtor.com/blog/categoryname_taxes/sort_entrydatetime-desc/  If you’re planning to buy a home this year, there’s one expense you can’t afford to overlook: closing costs.Almost every buyer knows they exist, but not that many know exactly what they cover, or how different they can be based on where you're buying. So, let’s break them down.What Are Closing Costs?Your closing costs are the additional fees and payments you make when finalizing your home purchase. Every buyer has them. According to Freddie Mac, they typically include things like homeowner insurance and title insurance, as well as various fees for your:Loan applicationCredit reportLoan originationHome appraisalHome inspectionProperty surveyAttorneyNational vs. Local: Why the Numbers Look So DifferentWhen you search for information about closing costs online, you’ll often see a national range, usually 2% to 5% of the home’s purchase price. While that’s a useful starting point if you’re working on your homebuying budget, it doesn’t tell the whole story. In reality, your closing costs will also vary based on:Taxes and fees where you live (like transfer taxes and recording fees)Service costs for things like title and attorney work in your local areaWhile the home price is obviously going to matter, state laws, tax rates, and even the going costs for title and attorney services can change what you expect to pay. That’s why it's important to talk to the pros ahead of time so you know what to budget for. It can put you in control before you even start shopping. To give you a rough ballpark, here’s a state-by-state look at typical closing costs right now based on those factors for the median-priced home in each state (see map below):As the map shows, in some states, typical closing costs are just roughly $1-3K. In a few places, they can be closer to $10-15K. That’s a big swing, especially if you’re buying your first home. And that’s why knowing what to expect matters.If you want a real number to help with your budget, your best bet is to talk to a local agent and a lender. They can run the math for your price range, loan type, and exact location.And just in case you’re looking at your state’s number and wondering if there’s any way to trim that bill, NerdWallet shares a few strategies that can help:Negotiate with the seller. Ask for concessions like a credit toward your closing costs.Shop around for homeowner’s insurance. Compare coverage and rates before you commit.Check for assistance programs. Some states, professions, and neighborhoods offer help. Your agent and lender can point you to what’s available locally.Bottom LineClosing costs are a key part of buying a home, but they can vary more than most people realize. Knowing your numbers (and how to potentially bring them down) can go a long way and help you feel confident about your purchase. Let’s look at typical closing costs in our area and get you a personalized estimate, so you can craft your ideal budget. http://pkrealtor.com/blog/1006/closing-costs-unpacked:-state-by-state-breakdowns-for-today’s-buyers/ Mon, 29 Sep 2025 07:41:45 -0500  You’ve been working on your savings and dreaming of that moment when you finally have keys to a place that’s truly yours. What you might not realize is that your tax return could give you a little extra cash to help you get there sooner. As Freddie Mac notes:“ . . . your tax refund from the IRS can be a useful supplement to your homebuying budget.” So, if you’re getting a tax refund this year, you can use it to help you pay for some of the upfront costs that come with buying a home, like the down payment and closing costs. And here’s the best part.On average, people are getting even more money back in their refunds than they did last year. While it’s not a big increase, the visual below uses data from the Internal Revenue Service (IRS) to show the average individual’s refund is 3.9% higher this year:Of course, how much money you may get in your tax refund is going to vary. But when it comes to buying a home, any extra cash can help move things forward. Here are a few examples of how you can put that money to good use, according to Freddie Mac:Save for a down payment – Saving for a down payment can be one of the biggest hurdles for buyers. Setting aside your tax refund for this expense could help you get to your goal faster. Just remember, it’s typically not required to put 20% down.Pay for closing costs – Closing costs include fees for things like the appraisal, title insurance, and underwriting of your loan. They’re generally between 2% and 5% of the total purchase price of the home. So, putting your refund toward these costs can make things more manageable on closing day.Lower your mortgage rate – Your lender might give you the option to buy down your mortgage rate. If you qualify for this option, you could pay up front to have a lower rate on your mortgage. If affordability is tight for you at today’s rates and home prices, this may be worth exploring.But you don’t have to figure it all out on your own. Working with a team of trusted real estate professionals who understand the homebuying process, what you need to save, and any resources you can tap into will help you make sure you’re ready to buy when the time comes.Bottom LineWhen it comes to saving for a home, every dollar gets you one step closer to your goal. While your tax refund may not be enough to change the game, it can help give your homebuying fund a boost.What would having your own home mean for you or your family this year? Let’s talk about it and we’ll come up with a strategy for success.  http://pkrealtor.com/blog/899/are-you-saving-up-to-buy-a-home?-your-tax-refund-can-help/ Tue, 15 Apr 2025 08:42:39 -0500 Owning a home comes with many benefits, both non-financial and financial. From the sense of accomplishment and freedom of expression, to growing your net worth, it’s easy to fall in love with homeownership. What’s the top reason you’d love to own a home? Let me know and we’ll come up with a plan that makes it possible. http://pkrealtor.com/blog/853/why-you’ll-love-owning-a-home/ Fri, 14 Feb 2025 07:44:49 -0500  Have you been saving up to buy a home this year? If so, you know there are a number of expenses involved – from your down payment to closing costs. But did you also know your tax refund can help you pay for some of these expenses? As Credit Karma explains:“If one of your goals is to stop renting and buy a home, you’ll need to save up for closing costs and a down payment on the mortgage. A tax refund can give you a start on the road to homeownership. If you’ve already started to save, your tax refund could move you down the road faster.”While how much money you may get in a tax refund is going to vary, it can be encouraging to have a general idea of what’s possible. Here’s what CNET has to say about the average increase people are seeing this year:“The average refund size is up by 6.1%, from $2,903 for 2023's tax season through March 24, to $3,081 for this season through March 22.”Sounds great, right? Remember, your number is going to be different. But if you do get a refund, here are a few examples of how you can use it when buying a home. According to Freddie Mac:Saving for a down payment – One of the biggest barriers to homeownership is setting aside enough money for a down payment. You could reach your savings goal even faster by using your tax refund to help.Paying for closing costs – Closing costs cover some of the payments you’ll make at closing. They’re generally between 2% and 5% of the total purchase price of the home. You could direct your tax refund toward these closing costs.Lowering your mortgage rate – Your lender might give you the option to buy down your mortgage rate. If affordability is tight for you at today’s rates and home prices, this option may be worth exploring. If you qualify for this option, you could pay upfront to have a lower rate on your mortgage.The best way to get ready to buy a home is to work with a team of trusted real estate professionals who understand the process and what you’ll need to do to be ready to buy.Bottom LineYour tax refund can help you reach your savings goal for buying a home. Let’s talk about what you’re looking for, because your home may be more within reach than you think. http://pkrealtor.com/blog/622/ways-to-use-your-tax-refund-if-you-want-to-buy-a-home/ Mon, 15 Apr 2024 07:45:03 -0500  Before making the decision to buy a home, it's important to plan for all the costs you’ll be responsible for. While you're busy saving for the down payment, don't forget you’ll want to prep for closing costs too.Here’s some helpful information on what those costs are and how much you should budget for them.What Are Closing Costs?A recent article from Bankrate explains:“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”Simply put, your closing costs are the additional fees and payments you have to make at closing. According to Freddie Mac, while they can vary by location and situation, closing costs typically include:Government recording costsAppraisal feesCredit report feesLender origination feesTitle servicesTax service feesSurvey feesAttorney feesUnderwriting FeesHow Much Are Closing Costs?According to the same Freddie Mac article mentioned above, they’re typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to budget.Let’s say you find a home you want to purchase at today’s median price of $384,500. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,690 and $19,225.But keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.Make Sure You’re Prepared To CloseFreddie Mac provides great advice for homebuyers, saying:“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”The best way to do that is by partnering with a team of trusted real estate professionals. That gives you a group of experts to help you understand how much you’ll need to save and what you’ll want to be prepped for. It also means you have go-to resources for any questions that pop up along the way.Bottom LinePlanning for the fees and payments you'll need to cover when you're closing on your home is important. Partnering with a local real estate professional can give you the guidance and confidence you need throughout the process. http://pkrealtor.com/blog/607/what-every-homebuyer-should-know-about-closing-costs/ Mon, 25 Mar 2024 07:57:25 -0500