About how much money should I have saved to buy a house?

Question

So I'm not looking for a house right now, actually I probably won't even look to buy a house for about at least 2 years but I am saving and wanted to know what was a good amount to have saved up to buy a house. I live in Pennsylvania and probably would be staying in Pennsylvania.

Answer 1

This question could have several answers. First in most bank loans today, you would be required to have 20% as most banks will only loan 80% of the proposed value of the house. (this would also be based on the appraised value of the home). In two years, this could change with property value increases or decreases. Also, are you going to furnish your new home with the furniture you have? You should plan for extra expenses here also. You are, in most cases required to pay the first year's insurance upfront, as well and the connection of all utilities as telephone, water, electricity, cable and any others as to the area. If you purchase in a area where there is a "homeowners" policy, there are sometimes fees or dues required. Look at the entire picture, think about what you want, where you want it, and what it takes to accomplish the finished desire.

Look into the area where you think you want to live. Contact the local authorities for current base cost for connection fees, homeowner fees, basic rates for insurance for the type home you plan to purchase.

Put all this data into a "new home" folder. Collect all the data you think will be involved in your purchase and this should give you a close indication of funds you would need. I would probably add an additional 10% for the unknown cost.

Don't get scared. It really is fun and interesting to look into these areas and being prepared makes your new home more enjoyable from the beginning. Happy home hunting and good luck.

Answer 2

With all the finance vehicals in place, you can buy a house no matter how much you have saved up. Usually however, I would recommend a minimum of 5% down (10% or more if you can handle it) and whatever you need to go through your closing costs. One thing you want to avoid if you can is PMI, you can do this by having two mortgages say a 80/15/5 loan... where your first mortgage is 80%, the second is 15% and the rest you put down as down payment. This should save you some money. Also becareful with flood insurance... whatever property you buy make sure it is not on a flood plane. So for every 100K of house you are planning to buy, I would save about 11K of cash.

Answer 3

Your this type of person i like to help in finding out to purchase a private loan. Now may be the suitable time to purchase a house. expenditures are at an staggering low and sellers are relatively prepared that should assist you interior the final expenditures. that's what you opt to do. seem for a house that has a minimum of three bedrooms and 2 baths around your college. if your mom is prepared that should assist you out with the fairly some final expenditures too that must be right for you. possibly she ought to grant you a private loan of $3,000. Do you have a job at the same time as attending college? How long have you ever been working? despite if it quite is a factor time have you ever been doing it for better than 2 years. because you're renting is it a private person or from a apartment company? there are a number of classes which you likely may be eligible for. Do you have good credit? how many credit taking part in cards do you have? student Loans? the suitable thank you to talk down a broking in value is get a house inspection. If there is something incorrect with the region tell the broking to take it off the value of the residing house or permit him fix it up. do no longer sense forced into finding out to purchase a house basically because you're youthful. Take somebody which you have faith like a chum or maybe your mom. as quickly as you purchase the residing house you may hire out the relax bedrooms on your persons that are attending college with you. Use your mom through fact the factor guy so as that way your persons won't worry you approximately maintenance or earnings on you for no longer paying their honest share in hire. After a million year or once you graduate all you ought to do is refinance the valuables and payoff any student loans and be just about debt loose.

Answer 4

Hope you are in a nice part of Pennsylvania. I was born in Pottstown and grew up in Spring City. That's in the southeastern part, up the Schuylkill River.

Generally, as a rule of thumb, the down payment is 20% to 25% of the total purchase price. So if you do not have that much saved, plus some for your moving expenses and whatever fixtures or furniture you will need that you didn't need in your prior residence, you will need to have enough credit to cover the shortfall. And that credit cannot entirely be based on the value of the house itself, in the form of a second mortgage, because the mortgage companies will rarely go for that, unless the real estate market where you are essentially guarantees that the place will increase in value rapidly. Sometimes they will go for it if you are including the costs of renovations which will then increase the value of the property.

Good luck! Think of me the next time you have a shoo fly pie.

Answer 5

As a first time home buyer, the bank is going to want to see at least 20% down. That means, if you find a house that sells for 100,000, then be prepared to have $20,000 saved. That will be your down payment.

It's also important not to consider a house payment that would be more than 1/3 of your take home pay.

Answer 6

The question is tricky to answer. A. the real-estate market changes. both with pricing and interest rates.
B. Where in Pa would you be looking? location is every thing.
C how big of house do you desire?
I live and work as a Realtor in Chicago
Recently my mother was going to a religious school in P.A. Also
I had a client who recently moved from there as well.
homes there on the cheap side 100k so 10k for conventional loan. But i would just watch and better your credit score. when your ready the cost to borrow will be cheaper if you do.

Answer 7

Go to a bank and speak with a loan officer. They can help you set goals and give a resonable picture of what you can afford. Usually you would want to put down 20%.
Watch your local paper for Seminars for First Time Buyers. You can also go to a Real Estate Office near you and ask for a Buyer Agent. Meet with them and discuss your future plans and ask for any info/brochures they may have. These folks work for you and don't get paid until closing. Start now. The more you know the better.
I wish I had more clients like you.
Good Luck
jackosullivan.net

Answer 8

There are many answers to this.

The general rule used to be that you needed a 20% down payment. However, there were government programs in which you could have as little as 5% down payment.

And, in recent years, there were "zero down" options from some lenders. However, with the recent downturn in housing prices, lenders are wary of these, as the value of a home can go down to less than the amount owed on the property (which is not good for the lender, should the buyer default.)

No matter how much your lender requires you to put down, one thing is fairly certain: the larger your down payment, the smaller your monthly payments.

Answer 9

I just bought my first house , I had 0 down and 0 closing cost. I actually got a $134 check back at closing. Call a mortage broker, or do some research on a FHA w/ a Nehiamia gift grant. Thats how I bought my home. And it qualifies for any home, you don't have to purchase a crappy house or anything to get it.

Answer 10

It depends on what price range you'll be in, your credit score, and other factors. Will you be looking at new or an older one that will need some work? Lots of things to consider. Also, how much of a payment can you comfortably afford each month.