Wednesday, October 13, 2021 / by Tara Turner
How Much Money is Required to Buy a House
How Much Money is Required to Buy a House
The amount of money you'll need up front to buy a house depends on a number of factors, but in general, you'll need to come up with enough money to cover these 3 costs.
1. Earnest money is a deposit you make when submitting your offer to prove to the seller that you're serious about wanting to buy a home. The amount of earnest money required varies so ask your realtor what is appropriate.
2. Your down payment is a percentage of the cost of the home that you pay when the transaction closes. Down payment requirements vary based on the loan type but expect to put down somewhere between 5-20% of the purchase price.
3. Lastly, closing costs are the costs associated with processing your loan and the other paperwork required to buy a house. Closing costs typically average between 2-5% of the purchase price. When you apply for a loan, your lender will give you an estimate of your closing costs.
If you have any questions relating to buying or selling a home, please give us a call at 909-255-1070. Mitchell Stein License# 0208163
The amount of money you'll need up front to buy a house depends on a number of factors, but in general, you'll need to come up with enough money to cover these 3 costs.
1. Earnest money is a deposit you make when submitting your offer to prove to the seller that you're serious about wanting to buy a home. The amount of earnest money required varies so ask your realtor what is appropriate.
2. Your down payment is a percentage of the cost of the home that you pay when the transaction closes. Down payment requirements vary based on the loan type but expect to put down somewhere between 5-20% of the purchase price.
3. Lastly, closing costs are the costs associated with processing your loan and the other paperwork required to buy a house. Closing costs typically average between 2-5% of the purchase price. When you apply for a loan, your lender will give you an estimate of your closing costs.
If you have any questions relating to buying or selling a home, please give us a call at 909-255-1070. Mitchell Stein License# 0208163
