Today I’m breaking down the three big unavoidable costs associated with buying a home.
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Today I’m sharing the three main inescapable costs associated with buying a home. The first cost buyers must bear is down payment (0% to 20%). If you’re buying with a VA or rural development loan, you can enjoy putting 0% down. The next step is an FHA loan, which is 3.5% down. This is money you need to supply yourself; most lenders will not let you use gift funding for a down payment. Lastly, the conventional loan can require up to a 20% down payment, though with a conventional loan, you do get the benefit of not having to pay for mortgage insurance.
You also need to be aware of closing costs. These include things like the notary fee, your first year of insurance, and homeowners association fees if applicable.
Most lenders will not let you use gift funding for a down payment.
Don’t forget moving expenses. Getting all of your belongings from one home to the next home isn’t necessarily a cheap process; as with the other costs mentioned, make sure you factor it in and plan accordingly.
If you want more specific information on these costs, reach out to me anytime. I’m always happy to hear from you and answer whatever real estate-related questions you may have.