How much cash do you need to buy a home!?
If you’re considering buying a home it’s a good idea to know how much cash you will need to close. From your down-payment, closing cost and other fees; you will want to know these up front to make sure you have enough.
The amount of your down payment will vary depending on the type of financing. If you’re going FHA your down payment may be as low as 3.5% of the sale price. If you’re going conventional, you may get a loan with a down payment of as low as 5%. You’ll want to consult your mortgage lender about your options.
LOAN ORIGINATION FEES AND OTHER EXPENSES ASSOCIATED WITH THE LOAN
If you’re financing your purchase, there were will loan original fees, fees for appraisal and credit certification fees.
There are additional fees that the title company charges. These include but are not limited to owner title policy, lender title policy, escrow fees and recording fees. The title policy fees are regulated by the state and depend on the value of the property. The other fees are set by the title company.
Normally a lender will require money to set up an escrow account were taxes and insurance premiums are kept so that those expenses are wrapped into your monthly payment. You can likely expect a credit from the Seller for some of the property taxes which may offset this expense, however, the Lender will want to collect some money up front so that they can pay the taxes at the beginning of the year and/or when the insurance has to be renewed.
If you want a more specific example of the costs for a home that’s $215K, please click HERE.