If you are budgeting to buy your first home in Johnston, here is the cost most first-time buyers forget until late: closing costs, on top of your down payment.

Closing costs for a buyer usually run a few percent of the purchase price, and they cover the lender's fees, title and escrow, an appraisal, and prepaid items like property taxes and the first year of homeowners insurance. They are separate from your down payment, and on a Johnston home they can add up to real money, so plan for them from the start instead of getting surprised at the table.

Think in three buckets, not one: your down payment, your closing costs, and a small cushion for the first month in the house, because a new home always asks for a few things right away. When buyers only plan for the down payment, closing costs are what catch them off guard.

Here is a trade-off worth knowing. Cash up front versus negotiation. In some situations a seller will agree to cover part of your closing costs, which lowers your cash to close. That help is real, but it is a lever you trade for something else in the deal, so we use it on purpose, not by reflex.

What I typically see is that the best-prepared first-time buyers in Johnston ask their lender for a full estimate of cash to close early, before they fall for a house. As one example, a buyer who gets that number in week one can shop with real confidence instead of guessing right up until closing day.

For the full step-by-step of what happens and when, my Buyer Checklist lays it out.

Related Resources: What Can I Actually Afford to Buy in Johnston on My Income? and What Is a Home Inspection, and Do I Need One in Johnston?.

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Written by Jason Huffey, REALTOR with RE/MAX Revolution (License S73436000), serving Johnston and the greater Des Moines metro. Call or text (515) 606-1227. The Best Is Yet To Come.