If you are wondering, 'How much money should I save to buy a house?' — you are not alone. Many home buyers struggle with understanding how much cash they'll need to close on their home. We'll help you plan ahead to purchase your future home. Learn more about how much to save to purchase a house.
When you buy a house, fees and expenses can add up quickly. Calculating the down payment is just the start. To know how much money you need to save to buy a house, be sure to ask about closing costs and other expenses.
Here are a few other costs to be mindful of when you are saving to buy a house:
Often totaling a certain fraction of the price of the house, the down payment depends on which lender you use. A good rule of thumb is to try to have a 20% down payment on-hand to buy a house, but that can be a challenge. Lenders have options — such as VA loans or FHA loans — for buyers who can't or don't want to put down 20% of the cost.
Many home buyers, should they successfully save for a down payment on a house, may struggle with paying closing costs. Closing costs can be 2-3% of the amount of your loan. These costs vary depending on your location. Sometimes, a buyer can negotiate with the seller to pay the closing costs.
Most mortgages include taxes and homeowners insurance held in escrow, meaning that these fees will be included in your monthly mortgage payment. In order for that to happen, you will also need to pay some of the costs upfront.
When prospective home buyers think about how much to save, that amount can seem impossible at first. By setting realistic financial goals and trimming expenses, you can create a clear roadmap to buying a house.
After you make a financial plan, following some savings tips can help you stick to it.
Synchrony Bank provides award-winning deposit products to help you maximize your savings. Synchrony Bank offers the flexibility to manage your banking on your terms. Saving money with Synchrony Bank means that you have easy access to your account online or by phone.
Find us online or call 1-844-345-5789 to learn how Synchrony Bank can help you save for the house of your dreams.
USA Today: usatoday.com/story/money/personalfinance/2014/09/14/home-mortgage-save-budget/15466845/
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