Getting ready to buy your first home?
Weve received numerous calls from new home buyers who are eager to get started with owning a new home. After asking a few questions, it becomes clear they might be leasing for a bit longer. Why is that? It is because they had basically no savings.
What most first time home buyers dont realize is the amount of money needed to get into a home. Even if you can get a home loan with no or a low down payment, there are still some costs associated with the purchase.
Home buying costs many don’t think about
The down payment can vary from 0 down to 20%. Hiring a home inspector, possibly paying for a survey and POA transfer fees. Finally, there are prepaid items that can not be paid by the seller like home owners insurance and property taxes.
Saving for a new home purchase
Best way to save for a down payment on a new home is to make a savings plan and force yourself to follow the plan.
“Savings, however, are incredibly important, especially if you are looking to someday buy a house or get an investment property loan.Real EstateTrac recently reportedthat the average American down payment was around 15% in 2015. With the median sales price for a househovering around $250,000, house buyersmay need to save $40,000 or moreto buy a house. Even low down mortgageslike anFHA loan can cost you 3.5% plus closing costs, requiring $10,000 or more.” ~ Brandon Turner