Â As an agent I often get asked this question: Â How much money do I need to buy a house?
Thinking about buying?Â Plan for the following:
Down payment:Â Currently, for the most part buyers are required to come in with a minimum of 3.5 percent of the purchase price.Â There are scenarios were it could be less (VA loans) or more, however, 3.5% is a safe figure. Â
Closing cost: For the most part, in this market, Iâ€™m able to negotiate seller to pay 3% for closing cost.Â This should cover most of the closing cost, however, itâ€™s always a good idea to set aside 1% for any remaining closing cost.
Â Home inspections are optional: however, I strongly recommend you have one completed by a certified home inspector.Â The price of inspection varies but typically ranges depending on size of home, a good estimate is $400.
Appraisal: determines the value of a property; itâ€™s required in order for your lender to finance your home loan. You can expect to pay for the appraisal upfront, typically ranging from $400 to $500.
Home warranty:Â A home warranty is not required but itâ€™s great to have for those unexpected repairs that might come up.Â This can also be negotiated seller to pay; however, you should be prepared to pay for this out of pocket.Â Home warranties vary in coverage and price, a good estimate is $450.
Use this as a guiding tool and once ready to move forward with your purchase you'll be ahead of the game!