Here’s what you actually need to pay to buy a home in today’s market.
There are a lot of different factors that go into the cost of buying a home, but there are a few that I want to touch on in particular. As you purchase a home, and as the sale price of that home goes up, you can expect that the costs involved are also going to go up simply because you’ll have to pay a higher down payment. You can pay anywhere from 0% all the way up to 100% depending on the type of loan. A typical mortgage is in the 3.5% to 20% range.
As the down payment amount goes up, the closing costs decrease. Let’s say that you have a 20% down payment; your closing costs are going to be in the 2% to 3% range. If you have a 3.5% down payment, you’re probably going to be closer to the 5% to 6% range.
The higher the down payment, the lower the closing costs.
Finally, I always recommend a home inspection during the purchase process. A home inspection, pest inspection, and radon test are three things that will make sure there are no surprises for you after you buy the house. They will run you roughly $500 to $600 total that you will need to pay up front.
Again, there are a lot of different factors and costs that go into purchasing a home. If you have specific questions, reach out to me. I'd love to get very detailed about your current situation.
