How much money do you need to buy a house?
If you're buying a home, here are costs to consider. #HOME
Costs to pay upfront
In addition to the initial price tag of the home expect to pay the down payment and closing costs
Down payment You will receive the most favorable mortgage rates and avoid paying private mortgage insurance by making a down payment of 20 percent or more. Some conventional mortgage programs backed by Fannie Mae and Freddie Mac require just 3% down.
Closing costs Generally, you can expect to pay 2 - 5 percent of the purchase price in closing costs. The actual amount will vary. Closing costs may include appraisal fees, credit report fees, origination fees, application fees, title search fees, title insurance and underwriting fees.
Expenses for homeowners
After the initial cost of purchasing a home, there are several ongoing costs to consider.
Mortgage payment Your monthly mortgage payment - the principle and interest - is one of the most predictable ongoing costs.
Homeowners insurance Homeowners insurance generally covers the repair or replacement of the structure of your house and the contents within from disasters, theft and vandalism.
Property taxes The cost of property tax differs widely by state and county. Your real estate agent can provide an estimate. Property taxes are not fixed. Local governments adjust tax rates annually depending on needs.
HOA fees Homeowner's association or HOA fees fluctuate by community. These fees may cover landscaping, pool maintenance, trash removal, utilities for common area, security, fire alarms and pest control.
Maintenance and utilities It's important to consider utilities such as electric, water, gas and internet service into the monthly cost of the home. Consider budgeting for emergency repairs.
Finally, don't let the costs of a home dissuade you from the purchase. Purchasing a home is an investment and contributes to your family's wealth building. When you're ready, contact Vanmar Lending about getting pre-qualified for a new home. Planning ahead moves you closer to home ownership and wealth building.