Do you dream of owning a house someday? If so, you may be wondering how much money you’ll need to save before buying one. The total amount, of course, varies greatly from person to person.
If you don’t buy the home outright and plan on a mortgage, the best bet is to save at least 20% of the home’s purchase price as a down payment. That amount varies depending on the purchase price of the house.
Private Mortgage Insurance
If your credit history is poor or you cannot make a large down payment, this may be mandatory. You’ll need to check with your lender to see what options they offer, but you’ll likely pay for this unless you can afford to put 20% down in cash.
These fees cover the cost of the closing paperwork for the property. They also include legal fees, title searches, surveys, etc. These closing costs vary by state, so it’s best to talk to your real estate agent or lender about how much they charge if they’re unwilling to roll these transaction costs into your loan.