How to Set a Realistic Budget for Your First Home

Plan your finances with tips tailored for first-time buyers—start smart with Seeking Agents™.

Why Budgeting Is Your First Big Win

Dreaming of your first home? A realistic budget is your roadmap to making it happen without financial stress. For first-time buyers, it’s easy to underestimate costs or overshoot your means. Seeking Agents™ helps you plan smart, connecting you with agents who break down the numbers and keep you on track.

Let’s dive into how to set a budget that works for you—step by step.

Key Costs to Include

A solid budget covers more than just the sticker price. Here’s what to factor in:

  • Down Payment: Typically 3-20% of the home price ($6,000-$40,000 on a $200,000 home). Low-down-payment loans (e.g., FHA) can help, but they come with extras like mortgage insurance.
  • Monthly Payments: Mortgage principal and interest, plus property taxes, homeowners insurance, and possibly HOA fees—aim for 25-30% of your monthly income.
  • Closing Costs: 2-5% of the purchase price ($4,000-$10,000 on a $200,000 home) for fees like title insurance and appraisals.
  • Moving & Maintenance: Budget $1,000-$3,000 for moving, plus 1-2% of the home’s value yearly for upkeep.

Miss these, and you’re setting yourself up for a scramble later.

Your Budgeting Checklist

Use these steps to lock in a realistic budget:

  • “What’s my total monthly income, and how much can I spend on housing?”
  • “How much have I saved for a down payment and closing costs?”
  • “Can I get pre-approved to see my loan limit?”
  • “What ongoing costs (taxes, insurance) should I expect?”

Run these by an agent from Seeking Agents™ to keep your plan airtight.

Build Your Budget Now

Don’t let an shaky budget stall your first home. With Seeking Agents™, you’ll work with agents who help you plan finances like a pro. Start today and buy with peace of mind.

Find Your Agent Now

Learn more: Saving for Your Down Payment and Closing Costs

More Budgeting Insights