Many home buyers wonder how much cash they will need in order to purchase a home. Here are some guidelines in order to be more prepared as you begin the process.
1. Upfront costs:
2. Down Payment:
This is the biggest initial expense when purchasing a home. The amount is variable depending on what type of loan you are using, but the typical amount for a conventional loan is 20%.
3. Additional costs due at closing:
At closing there are some additional fees that can be due including lender fees, title fees, title insurance, prepaid insurance and property taxes, prepaid mortgage insurance, government recording and transfer charges. Some of these can be rolled into your loan or will need to be paid at closing, depending on your lender and title company.
Although all of this information can help as a guideline when preparing to purchase a home, your lender will be able to give you more specifics when you receive your loan pre-approval.
Corcoran McEnearney
e. alanna.nichols@corcoranmce.com
p. 571.258.7962