The Cost of Buying.

“How much money should I have in order to purchase a home?”

Many people believe you need to make tons of money or have a big pile of cash in the bank to buy a home. While that is helpful, it isn’t entirely true.

If you are a first-time homebuyer, FHA loans allow you to put as little as 3.5% down. Let’s do the math, if you bought a home for $250,000, you would need $8,750 to pay upfront. Keep in mind, the lower the down-payment, the higher the monthly cost.

Don’t forget about closing costs, which can be around $10,000. This number can seem frightening… however many lenders offer excellent incentives to help you pay for those closing costs! Many lenders will pay 1-3% of the loan amount toward your closing, which has the potential to cut those costs in half.

The next costs to prepare for are inspections and appraisals. Both of these are a necessity when buying a home and can protect you in so many ways. An inspection can costs anywhere between $300 to $500. An appraisal can also range from about $300 to $500.

Now that we have the numbers broken down, it is much easier to swallow. Buying a home is doable, and we can help you do it!