Hey everyone, today we are answering the question, “How much money do I need to buy a house?” Often, buying a house is a very big decision because of how expensive it can be. How much money do you actually need on hand to be able to buy a house? The answer may be lower than you expect. Watch today’s video to find out how much you will need.
“Hey guys, I’m going to give you the top three expenses when buying a house so you know how much money to save, and, spoiler alert, it could be as little as $15,000. The first one is downpayment. A lot of people think this is 20%. Guys, we’re Americans, we can’t save $40,000. So you can put down as little as 3% on a conventional loan, you can do 3.5% if you’re doing an FHA loan. You could put $0 down if you’re doing a veteran VA loan, and there are a lot of other programs out there that will cover your downpayment.
Your next expense is prepaid and closing costs. These are going to be 3 months’ worth of taxes, a year worth of insurance, and lender fees. So, this is typically anywhere from 2-3% of the home value. In this example, it would be about $5,000.
Now the third and final expense, which may not even be an expense, is contract fees. So, most of the things in the contract are paid for by the seller. However, you can also have the seller pay your closing costs. I’ve closed houses with veterans for under $1,000 and I’ve closed new builds for $1,000. The moral of the story is, if you’re interested in buying a house, it’s worth having that conversation with your realtor.”
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