All you need is 20% down to buy a house and boom, boom, it's done.
Actually, you're going to need a little bit more than that. I'm going to give you a Taya’s 2 Cents buyers guide on how much you're going to need to bring to the table and a little bit more outside the table.
Most buyers know that you need to bring money to the table to closing. What does that mean? That means not only do you need your down payment, but you're probably going to have some loan fees. You're going to have your escrow title fees. These are fees that are associated with buying a home that most people are familiar with.
What most people don't think about until after the fact is that you have money to bring outside of the table. What do I mean by that? I'm talking about it costs money to move. Even if you're moving down the street, that costs time, that costs money. Not to mention the fact that if you do want to do a little bit of light renovating, even if it's painting, even if it's refinishing the floors, changing out the carpet, that's money out of your pocket, whether you're putting it on a credit card or you're paying cash.
Not to mention the fact that if you're moving into a new house, you're probably going to want some furniture. The last time I checked furniture is expensive. If you're buying new construction, most people don't know that new construction doesn't come with window treatments. Think about that. If there are a lot of windows in this house and there are no window treatments that cost adds up. You're going to be installing TVs. Maybe the wiring's not there. Maybe you want an alarm system. You guys, this adds up. That is cash; that is money that you're charging.
These should be added on a spreadsheet, so before you even think about buying, let's make a plan. Put together a spreadsheet that not only has your down payment and all the costs that your loan officer said that you can expect, but also plan a budget for your furniture, for your move, for security, for the audio-visual equipment, all these things are things that should be planned in advance.
That way, if you want to be able to afford those things and you must adjust the purchase price of your home, you can do that in advance and you'll set yourself up for success, not for disappointment, but that's just my 2 cents.
If you have any questions, or you want to start a dialogue, let’s talk.
Don’t forget to catch up on my weekly show, Taya’s 2 Cents, where share my two cents on different real estate topics from buying and selling real estate, owning a home and more.