new home..first buyers....how much to save first??

Question

ok so we live in SA, how much are you supposed to save for a deposit? we have no idea how much we should save. the thing is you don't only need deposit, but you need money for food, furniture, bills etc to be saved up also, so in the end you would need heaps!! how much did you save up before you moved in your first home?

Answer 1

My brother had 60K for down payment, financed 210K and made sure that he still had 1 year salary in the bank just in case something happened.

Answer 2

I am only 25, so I just started saving after I got my first job. I also live in MA, where housing is down but still very expensive.

I'm a first time home buyer as well. I had to do lots of calculations, spreadsheets, pie charts, etc. I try to get everything organized so that I will not make the biggest financial mistake of my life.

I expect to have a mortgage of 360K-380K, 6.5% 30 year fixed, 20K down, 8K prepayments/closing and 15K in reserves.

These are the my expected monthly cost (based on quarterly average). Percentage of my gross income.

Utilities 5%
Car Expense 8% (gas, car payment, insurance)
Student Loan 2%
Extras 5%
Savings 10%
Retirement 15%
Housing Budget 25% (Mortgage 19%, taxes and insurance)

Answer 3

On my first house, I didn't save much and I wish I would have. All that money I spent on pizza and going out I should have been banking.

Figure that 10% of the purchase price is the minimum to put down. Have some money in something liquid in case of emergencies, at least 6 months of living expenses.

Then you are really prepared to buy. Good luck!

Answer 4

I recommend saving at least 10% of the price you are willing to mortgage. The amount for utilities and sundries would depend on the location to where you plan to move, and how much (supplies, etc.) you already possess.

But speaking from experience, even when you think you have it all covered, there's always something else. Better to plan conservatively and save extra.

Answer 5

Hi,
I am a Realtor! I always suggest to my clients to save enough money to put down for earnest money which should be $1000 per $100,000. Then you will need 20% to put down on you loan if you want to get the best rate. Although if you apply for a FHA loan you only have to put 3% down, but it has to be our first home.

Answer 6

begin by saving the approx amount of your future house payment each month to see how that effects your budget....no one says you have to get new furniture right away. but you do have to cover your mortgage, utilities, food, etc and still save for emergencies, retirement, etc....don't overextend yourself by buying too expensive/big of a house...