How much cash is needed to buy a home?

Well, the amount you need to come up with depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money – the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment , a percentage of the cost of the home that you must pay when you go to settlement; and closing costs , the costs associated with processing the paperwork to buy a house.When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies.

Closing costs – which you will pay at settlement – average 1-1.5% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won’t be caught by surprise. 🙂

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3 Comments »

  1. Chris said

    hi, i live in utah.. i am 18 almost 19 and i really want to buy my first place, condo type of home. no more than $100,000 dollars. i am currently going to be working two jobs and attending school. i dont want to rent because i would rather put money into something that is going to give back to me. not renting, its so much of a waste. does anyone have any suggestions for me? what am i going to have to put down, what do i need to do.. i dont know. my dad is an ass, he probably wont help me even find the right answers so im just asking around. get at me cnguillen@hotmail.com
    thanks
    -Chris

  2. ingipuff said

    Hi Chris:
    My first suggestion is to find a mortgage broker and talk about how much you need and how much you can afford. Once you are aware of how much you can afford and borrow based on your income, etc, then you can start thinking about where you want to live and find a realtor to help you get started!

  3. abu.baker said

    please post tomarrow

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