Week 2: Know Your Numbers — Budgeting and Financing Basics
Smart real estate decisions start with a clear picture of your finances. Whether you're buying or selling, the numbers matter—here’s what to focus on.
For Buyers:
- Down Payment: Conventional loans often require 3–5%, FHA loans 3.5%, and VA/USDA may offer 0% down if you qualify.
- Debt-to-Income Ratio (DTI): Aim for 43% or lower. This ratio affects your loan approval and rate.
- Credit Score: A score of 620+ qualifies for many loans, but 740+ unlocks better rates and terms.
- Closing Costs: Typically 2–5% of the home price. Don’t forget moving expenses and an emergency cushion.
Looking for ways to reduce your upfront costs? Many states offer down payment assistance and other benefits for first-time buyers.
Explore our full guide here:
First-Time Home Buyer Programs by State.
For Sellers:
- Prepping Costs: Budget for staging, minor repairs, and cleaning. Small improvements can yield strong returns.
- Agent Commissions: Usually 5–6% of the sale price—but you can save.
Pro Tip:
On Seeking Agents™, agents compete to work with you—often offering lower commission rates or perks like free home valuations or marketing services.Need help getting started? Ask your lender or financial advisor for a personalized breakdown—or use one of our free tools to run your own numbers.
Next Week: Finding the Right Agent — Why It Matters More Than You Think