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How much money you need to save for a house?



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amother
Scarlet


 

Post Wed, Jan 10 2018, 2:56 pm
We're looking into this beautiful house that costs $350,000. We most likely need a financial advisor to help us out, but I'm wondering if anyone here could also help for first time home owners. How much money do we need in total if we're looking into buying a $350,000 house? how much down payment, moving company etc?
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rikki 1




 
 
    
 

Post Wed, Jan 10 2018, 2:58 pm
A big amount you will need is closing costs. That can easily be $13,000, depending on where you are. If you are a first time homebuyer you only have to put down 3% in many cases.
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amother
Pewter


 

Post Wed, Jan 10 2018, 3:06 pm
We bought a similar priced house, this is what we spent.
$35,000 down payment, we put down 10% and pay PMI
$10,000 closing costs
$1,200 movers
$8,000 replacing carpeting, painting and some other minor work.

Assuming the house doesn't need a lot of work the biggest variable is the down payment. The more you put down the lower your mortgage payments and generally the better the interest rate. We chose to buy rather than wait until we had more money for a down payment and it was a good decision for us.
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amother
Black


 

Post Wed, Jan 10 2018, 3:07 pm
Also have some money in reserve for the inevitable repairs that suddenly crop up immediately after closing. Budget for snow removal and gardening if you're not planning to do it yourself, and also the higher utility costs you'll be paying.
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Shoshana37




 
 
    
 

Post Wed, Jan 10 2018, 3:23 pm
It really depends where you are buying, State. In NY must put 20% down + closing fees.
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naomi2




 
 
    
 

Post Wed, Jan 10 2018, 3:31 pm
[quote="Shoshana37"]It really depends where you are buying, State. In NY must put 20% down + closing fees.[/qujote]
Also, you would need to be sure you can cover the monthly mortgage fees and bills
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amother
Pewter


 

Post Wed, Jan 10 2018, 3:32 pm
Shoshana37 wrote:
It really depends where you are buying, State. In NY must put 20% down + closing fees.

That's not correct. You can put down less you just need to pay PMI (property mortgage insurance) monthly until you've paid off 20% of the principal.
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mille




 
 
    
 

Post Wed, Jan 10 2018, 5:11 pm
Depends on your market, too. I live in a hot market where sellers get a lot of say. If you don't want to put 20% down, your bid is considered less desirable. In places like the SF Bay Area and Seattle, sometimes people put down way more than 20% just to get an offer accepted shock !

You also want to make sure that buying the house doesn't dry up your savings. You will need money for incidentals, which are numerous and costly in houses. The home inspection only tells you so much - but if your boiler decides to die one day, that's several grand out of YOUR pocket. If your pipes freeze and burst, that's on you now. I think the usual recommendations are to have 6 months of expenses as an emergency fund. And consider that all expenses will go up at least a little bit, not just mortgage vs rent - your gas & electric to heat and cool a bigger space, landscaping/the time it takes to DIY, etc.

Best of luck! It's stressful and crazy to buy a house but so awesome to own one!
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amother
Lavender


 

Post Wed, Jan 10 2018, 5:16 pm
Shoshana37 wrote:
It really depends where you are buying, State. In NY must put 20% down + closing fees.

Ttly incorrect I do mortgages in ny nj ct fl & pa . You can put down as little 3.5%
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SixOfWands




 
 
    
 

Post Wed, Jan 10 2018, 5:33 pm
amother wrote:
Ttly incorrect I do mortgages in ny nj ct fl & pa . You can put down as little 3.5%


You can.

The question is whether its a good idea.

(1) You are likely to be paying a higher interest rate with a low down payment. That means that, in the long run, you will likely be paying tens of thousands of dollars more for the house.

(2) You will also be required to pay PMI until you have paid 20%. That could be over $100 a month on top of your mortgage, or about $1500 a year.

(3) If you can't save 10% down, can you afford the house? Maybe you can. But maybe not.

You also need to be sure that you have substantial savings for repairs.
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amother
Orchid


 

Post Wed, Jan 10 2018, 5:45 pm
In Monsey, closing costs on a house $355. Are running me 17 k. Could be because of the way were paying property taxes? I’m not sure. But we’re putting down 20% so were close to $90K shock
Huge chunk of our savings !
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bookworm10




 
 
    
 

Post Wed, Jan 10 2018, 6:57 pm
Experts recommend 20 percent to put down. That would be 70K. You can put down less, but it makes your mortgage and rates just up. Closing costs range between 4-6 percent of the house price you are buying. Moving costs are a few thousand.

We moved in and didnt touch a thing in our house. We chose to put more money down and not do any work. We lived with a lot of things others wouldn't, but our mortgage was lower.

I would ask the previous owners of the house about how much the average utility bills are. There is also property taxes, homeowners insurance, and landscaping/gardening.
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amother
Rose


 

Post Wed, Jan 10 2018, 8:49 pm
Also keep in mind you have to have home owners insurance and pay property taxes. These can be added into your monthly mortgage, which is usually the easiest way to do it. But then realize your monthly payments will be higher than just straight mortgage (+ PMI if you have). My husband and I chose to put less than 20% down Bc a) we had to do some work to the house so needed to save some cash for that. B) I wanted to make sure we kept a good amount in our savings account “just in case.” You never know what’ll happen in life and I didn’t want all my money put into the house and then be Stuck if I needed liquid money. Hatzlacha! It can seem scary and overwhelming but it’ll iyh pay off in the long run!
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amother
Red


 

Post Mon, Feb 12 2018, 11:57 am
I’m in contract now for a house and I was able to get a loan product with 3% down, seller pays 3% at closing and NO pmi.
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