Dave Yelk
Sales Executive
Realty Executives Platinum
When planning to purchase a house, you may wonder "how much money do I need to buy a house?"
Buying a house is one of the biggest financial decisions you'll make, and knowing how much money you need upfront is crucial for planning. While the total cost can vary widely depending on location, size, and loan terms, here are the main expenses to consider:
1. Down Payment
Most lenders require a down payment of 5% to 20% of the home's purchase price. For a $300,000 home, that could mean $15,000 to $60,000. Some government-backed loans (like FHA) allow lower down payments, even as low as 3.5%. To get a more accurate estimate for your unique situation, contact a local lender.
2. Closing Costs
These typically range from 2% to 5% of the home’s price and cover fees for the loan, title search, appraisal, and more. For a $300,000 home, expect $6,000 to $15,000 in closing costs.
3. Moving and Immediate Expenses
Don’t forget moving costs, furniture, utilities setup, and potential repairs or renovations. A few thousand dollars set aside can help ease this transition.
