How much money should I have in saving before I start "actually" looking?

Asked by Synthia Makarov, Spokane, WA Thu Jan 10, 2013

I need to know how much money I should save up before I buy a house. I don't want to find a house I love and then realize I don't enough money saved up.

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J, Agent, Greensboro, NC
Thu Jan 10, 2013
Synthia, I am very impressed with how you are going about planning the purchase of a home by asking one of the most important questions I've seen on Trulia in a long time. You are already ahead the game by learning how to be a financially responsible home owner. Ron has offered an outstanding answer!

I will encourage you as you plan ahead to ask as many questions as you like on Trulia. We are here for you and we'll guide you as best we can and within our authority as professional and experienced agents. Good luck to you!
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Ron Thomas, Agent, Fresno, CA
Thu Jan 10, 2013
To do it right;
20% of the Purchase Price for the DOWN PAYMENT
6% of the Purchase Price for Closing Costs
3 month's Gross wages in a Saving Account

This assumes that you find a TURN-KEY and do not need any repairs/upgrading.

$10,000-$20,000 for repairs and upgrading.

If you try to cut all the corners; you could end up like a lot of people who went through Foreclosure the instant things took a dip.
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Keith Jean-P…, Agent, East Brunswick, NJ
Thu Jan 10, 2013
This all depends on your purchase price and type of loan you are applying for. With an FHA loan, you only need to put down 3.5% and can write a portion of your closing costs in the loan if desired. So for example with FHA you would need the 3.5% down of the purchase price and about 3-4% for closing costs if you were going to pay them all on your own. You will also needs some funds for inspections, application fees for mortgages, etc.

With a Conventional Mortgage, you are looking at 10% (with PERFECT credit and a GOOD bank) or most likely, 20% for a down payment and then the same, 3-4% for closing costs and misc fees as stated above.

Hopefully this will give you a general idea to help you get on the right track. If you have any other questions, please do not hesitate to ask.

Best of luck!!
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