SPEAKER_1: Alright, so last time we built the listing scan — six checks before anyone schedules a showing. The big insight was that a listing is a sales document, not a disclosure form. Today, let's delve into the financial planning aspect, as the budget question extends beyond the listing price. SPEAKER_2: Much bigger. And this is where a lot of buyers get into trouble. It's not. That's the starting number. SPEAKER_1: So what's actually in the full number? Walk through the categories. SPEAKER_2: Start at closing. The CFPB reports median closing costs were around $6,000 in 2022 — and common closing costs can include lender origination charges, appraisal fees, title insurance, recording fees, and prepaid expenses like homeowners insurance and property taxes. Those are due at or before settlement, on top of the down payment. SPEAKER_1: Wait — so someone could have the down payment ready and still be short at closing? SPEAKER_2: Exactly. The CFPB is clear that closing costs increase the cash a buyer needs beyond the down payment. And title insurance alone can be a significant share of that total. Lender's title insurance is typically paid by the borrower to protect the lender — not the buyer — against title problems. SPEAKER_1: Mm-hmm. And then there's the ongoing side — what hits after the keys are handed over? SPEAKER_2: Property taxes, homeowners insurance, utilities, and maintenance. Industry guidance generally recommends budgeting one to three percent of the home's value annually for maintenance and repairs, emphasizing the importance of a comprehensive budget. SPEAKER_1: So for a rural cabin that's already showing its age — which is most of what's available at this price point — the maintenance budget probably leans toward the top of that range. SPEAKER_2: Or past it. The cheaper listing became the more expensive property. SPEAKER_1: [short pause] That's the counterintuitive part. SPEAKER_2: That's the key idea. And it's why a monthly affordability worksheet matters more than the sticker price. Add up the mortgage payment, property taxes, insurance, estimated utilities, road maintenance fees if applicable, a monthly maintenance reserve, and consider potential financing options. That total is what the property actually costs to live in. SPEAKER_1: Now, rural cabins and off-grid properties — those can have financing complications too, right? SPEAKER_2: They can. Lenders treat rural acreage, manufactured homes, and properties with unusual systems differently than standard residential homes. Some won't finance them at all, which is why 'cash only' listings appear. Mortgage insurance may also apply if the down payment is below twenty percent, adding another monthly line item. Understanding financing options and verifying eligibility early — before falling in love with a listing — is crucial. SPEAKER_1: And comparing across counties — because property taxes and insurance aren't uniform across southern Colorado. SPEAKER_2: Not even close. Different counties and properties can mean varying property tax and insurance costs, impacting the overall budget. Rural Colorado homeowners insurance has gotten genuinely expensive in fire-prone areas. Someone should pull actual quotes for two or three target properties before making any offer, not after. SPEAKER_1: So what's the financial picture Steve needs to clarify before any of this math works? Because the Raton home sale is still the unknown variable. SPEAKER_2: That's the pressure point. Until the expected sale proceeds are clearer, the purchase budget ceiling isn't confirmed. The worksheet can be built, but the top line stays a range until that sale closes. SPEAKER_1: run the full worksheet before making any offer. Purchase price, closing costs, taxes, insurance, utilities, maintenance reserve, road fees, inspection costs, moving costs — all of it. And keep the sale proceeds as a range until there's a more reliable estimate in hand. SPEAKER_2: Remember — the goal isn't to find the cheapest cabin. It's to find the one where the total monthly and annual cost fits the real budget. Now, that Raton sale is the next piece to work through — how to price it, how to time it, and how to sequence the two transactions so one doesn't strand the other.