How Much Does it Cost to Purchase a Home Today?
How Much Does It Cost to Buy a Home Today?
There are more expenses to purchasing a home than you may think. I hope this video is helpful in thinking through the cost of purchasing a home and some added expenses often overlooked.
I'm going to use an example of purchasing a $200,000 home. The most popular aspect you'll think of is saving up for that down payment. You can put down as little as 3% on a home, for this example would be $6,000. Or if you want to put down 20% to avoid PMI, that would be $40,000. That is no small task to save up that much money. So it's a good idea to start thinking about these things early on so you're prepared when you start looking.
Another aspect often overlooked is the closing costs. In order to be prepared for your lending and title closing fees, do yourself a favor and plan ahead. In most cases, this can be anywhere from 2-5% of the purchase price. Calculate that out, that could be $4,000 to $10,000 of closing costs, depending on the lender and your transaction details. Sometimes you have your downpayment saved up, but may have overlooked the closing costs (which often includes your appraisal fee, which may be $700 - $1,000).
You may be able to ask for the seller to pay for some of your closing costs, in terms of a credit at closing. This may be an option, be sure to ask your agent about this.
Moving itself is costly. That may be $800 - $2,500 depending on the distance, size of truck, etc. Plan for that. And once you're in that house, you have to consider the basics. Make sure you have that shower curtain, toliet paper, paper towel and everyday needs like garbage cans, etc. Also, any new furniture you need to purchase, those are going to be expenses after the fact.
After walking through again, maybe you noticed some small repairs that need to be addressed, or you'd like to address cosmetically. Or some larger repairs (hopefully you budgeted for and are prepared to updated).
Pairing Up With The Right Agent
You want to pair up with the right agent and the right lender, to make sure they're on your side. Someone who is proactive & helpful so you understand the costs, risks and benefits of homes you're considering.
Thanks for spending some time with me, if you have questions or want to connect on getting started with the process - let me know! I'm happy to help!
Carly Schwanz, The Solomon Group - Coldwell Banker Action
(262) 707-4867 | [email protected]