as a first time buyer living in an affluent area, on one income, as much money should a person have in their savings account before they consider buying a home.
2006-10-01 12:26:58 · 5 answers · asked by leilani 1 in Business & Finance ➔ Investing
That all depends on the price of the house and the area you live (cost of living). You want atleast 20 percent down on the house if possible. And you dont want it to wipe out your account. You need enough extra for emergencies.
2006-10-01 12:29:57 · answer #1 · answered by yournotalone 6 · 0⤊ 0⤋
It totally depends. Definitely stop using your credit card asap, start paying off any debt you have, and start saving!! And if you're really getting more serious about home ownership, in the meantime go see a mortgage person and have them help you flesh it out depending on your area, income, home prices you're interested in, etc. etc. etc. The market is definitely leaning toward buyers right now and interest rates are still low so now is the time to start this process.
A good loan officer will take the time to show you some numbers in relation to your situation. We've had a lot of help from Washington Mutual bank. Owning a home is a great investment--good luck to you.
2006-10-01 19:35:50 · answer #2 · answered by Kim S 2 · 0⤊ 0⤋
A reasonable down payment, enough for closing costs, and money to cover whatever you'll need to furnish the new house and move into it - plus $5K or so for the inevitable emergencies and a cushion - would be good. Maybe not realistic, most people probably buy a house with less savings, but that much would be good.
2006-10-01 20:26:07 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Down payments are now optional in most places. The requirement is stated in the good faith estimate. Could be as low as two months PITI payments, up to six months. PITI=Principle, Interest, Taxes, Insurance. The main thing to know and figure is can you afford the loan payments monthly now, and three to five years from now. There are many loan options. Learn how mortgage's work, then get the one that works for what you are trying to do.
2006-10-02 03:29:18 · answer #4 · answered by Daniel P 2 · 0⤊ 0⤋
anuff to pay for the house
2006-10-05 10:46:21 · answer #5 · answered by brandy p 1 · 0⤊ 0⤋