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One of the biggest shocks of buying a home is finding out that you need way more cash to close on a house than just a down payment. It’s hard enough to save for the down payment on your home, only to find out that you need more-often a lot more-in order to complete the transaction.. Let’s look at how much cash it takes to actually purchase a home.
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Total cost to buy this house: $331,850. As you can see, taking the time to save up the full 20 percent now can save you a lot of money in the future, but it is not required. Tips for Saving Up Your Money. Whether your goal is to put down the full 20 percent, or just 3.5 percent, you still need to save up the funds.
Fha First Time First-time homebuyers like FHA loans because they might only need a 3.5 percent down payment. In fact, some transactions are structured to use part of the 6 percent potential seller’s credits as.The Best Mortgage Lenders For First Time Buyers An introduction to The Mortgage Centre and access to several mortgage resources, including mortgage calculators, mortgage rates, secured online applications, first time buyers guide, printable applications and much more.
Just like any goal, buying a home the smart way takes planning and preparation. The most time-consuming task is saving cash for the down payment, closing costs and other moving expenses. Down payment: We recommend putting down at least 10% on your new home, but 20% is even better because you avoid private mortgage insurance (pmi).
Why you should bundle your home and car insurance policies. A good homeowners and auto insurance bundle will ideally save you more money than if you purchased the policies at two different companies. There are a number of other benefits to bundling, but we’ll start with the obvious reason to combine your home and auto insurance policies:
· 1. Programmable thermostats can save up to $150 a year on energy costs when used properly. Use one that can automatically turn off your cooling system when you are not home, and turn your system on in time for you to arrive home to a cooled house.
Try to save 20% of your income for the next two years. If you make $72,000 a year (the income of the average first-time homebuyer), that’s nearly $30,000 you’ll have ready for a down payment, closing costs and moving expenses.
Shutterstock For most of us, buying a home is the biggest purchase of our lives – and the process is far from simple. Here are nine steps to take to make sure the home you buy is one you can afford: