How Much Do You Need to Save Before You Buy a Home?
If you are thinking about buying your first home, you may be wondering how much money you need to have saved before you will be able to buy a home. There is a lot that you will need to determine before you can answer this question but the fact that you are thinking about it is a step in the right direction. A lot will be determined by the kind of mortgage you plan to get and this will be based on what you will qualify for. When you are ready to get really serious, you will definitely want to talk to a mortgage lender and probably more than one.
A lender will be able to ask you specific questions about your income, savings and other debt as well as take a look at your credit to help you determine the best kind of mortgage for you. Based on this conversation and the kind of house you are looking for, the lender will then help you determine how much money you will need to save for your down payment. In addition to having enough money for a down payment, you will also want to have additional savings for other expenses related to buying a home like insurance, closing costs and money for the unexpected after you buy your home.
Once you are a homeowner, when something breaks, you can’t call the landlord to fix it so you will need to have money set aside to use for repairs and maybe one day for making updates to your home. In addition to your down payment and savings for the unexpected, you will need additional funds when you buy your house to pay for closing costs. Closing costs include a lot of different things and can such as inspections, property taxes, insurance, homeowner’s association dues, title, recording fees and other items as well. All of these may seem like small things but can add up to thousands of dollars even if you are buying a small home.
Now that you know a little more about what you will need to pay for when you buy a house, it is time to reach out to a lender and discuss specifics. If you don’t know a mortgage lender, your bank can more than likely help you and I can offer recommendations of my favorite local lenders as well. Once you sit down with a lender to talk about your specific situation, you will have a much better idea of how much money you need to save and once you know that, you can develop a plan to help you reach that goal.
Saving enough money to buy your first home may take a while but it is definitely a goal that will be well worth it when you are able to move into your very own home. Contact me today at 817.690.0976, I would be happy to answer any questions you have about finding your dream home!
Pam Snowden
Realty World Professionals
817-690-0976 (cell)
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