How Much Money Do I Need To Buy A Home

Dated: 11/13/2016

Views: 138

So, you want to buy a home? Below is an outline of the money needed from a buyer to proceed in the home buying process on a pre-existing home. If purchasing a new construction home, the option fee goes away and the earnest money amount can be lower.

#1 - Down Payment - depends on the loan type, can be anything from $0 (VA loan, USDA, Down Payment Assistance) to 3.5% (FHA) to 3-5% (Conventional)

#2 - Earnest Money - typically 1% of the sales price, this goes towards the down payment (this is good faith money to show that you are serious about purchasing the home)

#3 - Option Fee - $70- 100 due when the offer is agreed to, this gives you 7- 10 days to have a home inspection and negotiate repairs, if you change your mind for ANY reason during the 10 days, you can get your earnest money back, but if you proceed the option fee goes towards the purchase of the home

#4 - Home Inspection - approx. $400 to determine if there are any major repairs needed that the buyer wants the seller to address, this is an out of pocket expense

Lastly, you may have to pay for the property appraisal required by your lender approx. $400-$450 out of pocket and get reimbursed at closing.

So, even when utilizing zero down payment loans, the buyer still has to have some money available for the home buying process.

Trina Cannon, REALTOR®

eXp Realty, LLC

search for homes: http://thecannonrealtygroup.com/

Want to Advertise on this Site?

Latest Blog Posts

Spring Garden

It’s Spring! I hope you have had time to enjoy all the beautiful Texas Wildflowers! My sister (photographer and mom of 6, grandma of 5, Instagram name @kpmomof6) and I took a day to

Read More

San Antonio Home For Sale In Westover Hills 3203 Fontenay Park

3203 Fontenay Park, San Antonio, TX 78251Don’t miss this absolutely stunning 3 bedroom 2 bath with a study, single-story home in gated Westover Hills. Owner improvements and upgrades include a

Read More

6 Money Saving First Time Home Buyer Tips You NEED To Know About

by Emilie Malone | Mar 15, 2018Buying a home is an exciting time, but can also be stressful and overwhelming. Since it’s one of the biggest decisions you’ll make in your lifetime, it’s

Read More

How To Handle Moving To San Antonio Like A Champ

Do your homeworkWhen it comes to long-distance home shopping, “the Internet is your friend,” remarks Meghann Shike of Synergy Realty in Nashville. “You know the neighborhoods you

Read More