Home Buying in Olney>Question Details

Q, Home Buyer in Olney, Philadelphia,...

How Much Money Do You Need To Have Saved To Buy Your First Home?

Asked by Q, Olney, Philadelphia, PA Wed Feb 3, 2010

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Enough so that after closing, you still have at least six months' expenses in the bank.

Now, this isn't any sort of requirement, mind you - but depleting your savings leaves you as vulnerable as if you were to tape $100 bills to your body while walking through Citizens Bank Park.

After you buy a house, even if you don't buy any furnishings and move in your own truck and take on absolutely no My New Home Expenses (flat-screen, carpet, chandelier, silver dining service), you need a cushion in case Something Happens. Like your furnace blows ($2000), water heater ($750), transmission and engine (ca$h for clunkers is gone).
2 votes Thank Flag Link Wed Feb 3, 2010
The minimum you need for a FHA loan is 3.5% of the purchase price, plus if you do not ask for the seller to pay for closing costs you will need at least another $2500 - $3000. Call a local mortgage person to get a better idea of your situation
0 votes Thank Flag Link Thu Mar 7, 2013
How Much Money Do You Need To Have Saved To Buy Your First Home?????

Hi ,
It really depends on the price of your first home.
Luckily you don't- have to pay COM/ to your Realtor* Because the listing agent will pay
Your Realtor.
Also their will be 2%transfer tax due, And general home buying fees.
I would say at least $3500. -Which should be in your Good -Standing Savings account.
Because of the fact that the Bank wants to make sure that you will ,and can pay at-least
the first three months of the Mortgage payments!
I am willing to answer and guide you in the right direction during the first Home buying process.
Please contact me at the following:
Tina M Gorman *215-397-1455* Realtor>
@United Real-Estate>
0 votes Thank Flag Link Wed Mar 6, 2013
Usually you need about $2500 for closing cost plus escrows. This is just a rough estimate. Then you will need your down payment too. Talk to a loan officer to go over what you need.
0 votes Thank Flag Link Tue Mar 5, 2013
hi my name is marcia diggs and i will need eight thousand for moving and down payment and closing coast
0 votes Thank Flag Link Tue Mar 5, 2013
The bottom line is it all depends on a lot of factors. It depends on your lender, the price of the home you are purchasing, your employment. A basic guide line is 10 to 20 percent. At Keller Williams we have on site lenders ready to work with you. Please contact me if you need any help!
Good Luck!
-Robert A. Martini
Keller Williams Real Estate
0 votes Thank Flag Link Thu Feb 11, 2010
You should talk to a lender and see what program you can qualify for. It will depend on credit score. FhA is a good program where you need less down payment and seller can assist with some closing costs. There are going to be some changes in April. You should sit down with a lender as soon as possible to see if you can buy now and take advantage of first time buyer's credit.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Fri Feb 5, 2010
Hello, You need atl east 3.5% of the purchase price for down payment. The closing costs and pre paid items (taxes and insurance) can be paid for with a seller's assist (by the seller) if your realtor can negotiate that. You can also get a gift from a relative and you will get the $8000 after you purchase too. If you need help qualifying I'd be happy to assist you. Chad 610 622-2212 cbahnsen@mortgagenetwork.com
0 votes Thank Flag Link Thu Feb 4, 2010

As you have already been told it will depend on the price of the home that you buy.
A typical Olney home for $120,000 with a minimum of 3 1/2% down will require roughly $12,000 in total funds.
This would include a down payment of $4,200 plus Transfer Tax of $2,400 plus Title Insurance of $1,100 There will also be reserves for taxes and insurance recording fees notary fees inspection fees and reiumbursements to the seller for expenses that he paid in advance of another $4,300 more or less.
If you buy a home for a lower price,and there are many in Olney, all of these numbers will be lower. If you buy for higher price they will go up. If you negotiate a Sellers Assist it wiil require less cash from you.
When you find a home and apply for a mortgage you will be given a Good Faith Estimate that will be specific to the home that you are interested in buying. That will be your guide for total cash required.
Find a good Buyers Agent and ask questions, lots of them until you are satisfied.

Fran and Mark Redding
Prudential Fox Roach
1010 Stony Hill Road
215-321-3307 DIRECT
Web Reference: http://www.franandmark.com
0 votes Thank Flag Link Thu Feb 4, 2010
How much does the house cost?
if you have that much saved you can actually buy it.

If you want just a down payment 3.5% for fha and 10 to 25% for conventional financing.

Then more money to cover closing costs, moving costs, having the electricity turned on and so on.

The best answer, as much as you possibly can save. Not a penny less. That way you will be prepared for what owning a house can bring to you.
0 votes Thank Flag Link Wed Feb 3, 2010
Hello, Q,

Depending about your income, number of people in your family, and where you are buying, you can get a home with as little as $1,000. There is special financing offered by the state of Pennsylvania, and you can get the best deal by purchasing in Philadelphia. I am helping someone with that right now. Imagine... it's less than you would need for first and last month's rent if you were going to rent an apartment.

If you would like to discuss this further you may contact me at your convenience.

Good Luck with your home search.

Carol Cei
ReMax Millennium
Huntingdon Valley and Philadelphia
Web Reference: http://www.carolcei.com
0 votes Thank Flag Link Wed Feb 3, 2010
what about buying a home with intent to rent it out?
Flag Thu Sep 25, 2014
Q - in addition to closing costs and down payment............. the amount you will qualify for in a mortgage is a function of how much you earn..........your income has to be enough to substaniate the loan..........there are formulas and ratios that the banks use to determine if you earn enough to be able to pay the monthly mortgage amount.

Find a good mortgage rep, sit down, and they will go over all the financial aspects with you.

It's not just about how much money you have saved...........that's only part of the whole real estate puzzle.

Best wishes.............
0 votes Thank Flag Link Wed Feb 3, 2010
Hello Q,

One can get an FHA loan with a 3.5% down payment. The down side is, that the interest rate will be higher.
A conventional loan is for a 20% down payment. If you have any questions on this or any other Philadelphia Real Estate matter, feel free to contact me at 267-238-1054 or via my website: http://www.carlkabat.com

I work in the 19120 zip code. Feel free to give me a call.


Carl Kabat, Realtor
Web Reference: http://www.carlkabat.com
0 votes Thank Flag Link Wed Feb 3, 2010
Hello Q,

Well, that really depends on how much you want to spend on a home. If you are going to go FHA, you will need 3.5% of the loan amount for the down payment and a minimum credit score of 580. You will also need money saved for closing costs. I would say that you definitely need about $8,000 to start with. You will need to put down two deposits for the home that comes back to you at settlement.

Your best bet would be to find a buyer agent to hire even if you are not ready to purchase a home yet. The buyer agent will explain the buying process to you and what you need to know and expect.

Renee Porsia
Associate Broker
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
0 votes Thank Flag Link Wed Feb 3, 2010
It depend of the value of the house that you're looking for, but on the programs that we can find on the market today a list 3.5% down you will need , plus some closing cost , to be on the safe side I'd say 5.5% of the purchase price.
Do not forget also to be pre- aproval fro a lender.
Hope this answer helps.
0 votes Thank Flag Link Wed Feb 3, 2010
Not knowing any of your financials--Why not visit with any qualified loan officer(s) and see exactly what your budget can handle and check your credit score--The amount of money needed will depend on the purchase price of the house--you will need a downpayment, closing costs, etc.
0 votes Thank Flag Link Wed Feb 3, 2010
That's a great question. It greatly depends on what the circumstances are. But the one thing to remember is that the more money down you have, then the better your chances are for better financing. Down payments for a home can range from 3.5% (FHA) to 20% (conventional) and beyond (investment).

Let's assume that you are looking at a home which costs $150K. If you are going to get FHA financing, you will need $5,250 for a down payment and that does not include the required closing costs and inspection fees which can run a total of over $7,000 dollars (which part of it can come from seller's assist or gifted from family).

But unless I know exactly what the specifics are, I can't really give you a good number to go by except for those percentages. If you wish to talk about more specifics, please contact me.

Terrence Charest, e-Pro®
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
Cell (Preferred): 877.614.1494
Office: 215.659.5250
Fax: 215.659.5550

“Giving to Those Who Gave”
0 votes Thank Flag Link Wed Feb 3, 2010
It depends on what you can qualify for , confer with mortgage broker who can provide you guidelines.

You need at least 3.5% down payment,
2 years employment
Credit Scores 620 or above
Debt to income ratio in check
No liens, or negative credit issues

0 votes Thank Flag Link Wed Feb 3, 2010
Hi Q --

It depends on many factors. The sale price of a home, the loan program you will be qualifying for, if there is a possibility of a Seller Assist to help you with the closing costs. Call me at 610.291.1460 and I can walk you through your scenario. I have been helping clients with their Mortgage Financing for over 8 years.

Maura McDonnell
0 votes Thank Flag Link Wed Feb 3, 2010
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