If you’re thinking about buying a house in the next year or two, you may wonder what you’re getting into. Among those questions might be: How big a down payment do I need? Where will I get the money? Am I saving enough to cover the costs of home buying? We never want to keep you in the dark, so let’s talk about costs.
How much money is required varies based on the loan program that fits best for your situation, where the house is located, and how much the house is purchased for. A good rule of thumb is to expect payment of around 5% of the purchase price. That 5% includes your required down payment and closing costs. In some cases, you can get the sellers of the house to pay some or all of your closing costs – it really depends.
Wondering how to save enough for a down payment? Here are just a couple of things you can do:
- Build your savings. Save a certain sum every payday through payroll deduction or other automatic savings plans.
- Look into buyer assistance programs. These can be hard to find; your local lender will give you specific information and help you determine which homebuyer programs you qualify for that suit you best.
Don’t let these home-buying costs catch you off guard. And know you’re not alone! We’re here to help every step of the way. If you are thinking of buying a home, you’ll need someone in your corner. Someone you can trust, to talk straight, explain the many options and walk you through the steps. We’d like to be that someone.