This answer will be different for every family based on income, budget, and the cost of the prospective home, but first and foremost, you need to have enough money saved up to cover the down payment. Down payments can range from 3.5 percent to 20 percent of the total cost, depending on mortgage interest rate, current financial situation, and credit score. Many experts recommend putting down 20 percent (if you’re able) because it affords you a bigger stake in the property immediately and will lower your monthly payment in the future.
Next, you need to consider closing costs, which include prepaid interest, inspection fees, and property taxes. These can end up adding up to 2-5 percent of the total cost of the home, so plan accordingly.
You should also factor in moving expenses, decor and furniture upgrades, monthly mortgage payments, and an emergency fund for any repair or maintenance issues that inevitably arise.
How do I find a house?
Look no further! Use our team of trustworthy, friendly, and fun experts to connect you with your dream home. We have direct insight and experience in this field, and we’ve got the inside scoop on the current homes that are on the market.
If you aren’t quite convinced yet and would rather look around a bit on your own first, we respect that! With our access to the Internet and technology today, there are so many resources at your disposal. Sites like Zillow, Realtor.com, and Redfin are helpful tools you can use to get started at home, in tandem with your knowledgeable realtor.