Five Lessons For First Time Home Buyers– Do you know how much money you need to save in order to buy a home? There’s more to it than just your down payment. Don’t forget about the home inspection, any repairs needed, closing costs and don’t forget about moving expenses. Here are a few tips to help you budget for your next home…
- Home Inspections – When you are in contract with a home of your choice, you will have the opportunity to have a home inspection. Home inspections are highly encouraged so you can find out of there are any major issues with the home you are buying and so you know what you are getting into with the home. These can cost anywhere from $300 and up depending on the type of inspection you get.
- Closing Costs – According to bank rates annual survey, the average closing costs for a $200,000 home is about $3,754. Talk to your lender to see what your closings might be and what they include. Most closings costs include lender fees, title fees, appraisal, and more.
- TIP: Try Auto-Saving – Try setting up your bank account to deposit a certain percentage or flat amount from your paychecks into your savings account on a regular basis. This will help you not only automate this process, but help save as much or as little as you want.
- Down Payment – Do you know what your down payment will be on your next home? Talk to your lender about how much you will need to put down when purchasing your next home and your loan options. Sometimes buyers will put down 20% and some will put down 5%. This can depend on the home you choose, the loan you choose, and the money you have saved up. Talk to your lender about your options so you can plan.
- Moving Expenses – Do your research on how you will move into your new home. Will you hire help or will your family and friends pitch in? What will moving cost you?