How Much Money Does It Take to Buy a House?
When you think about how much it costs to buy a home, you often factor in the down payment and the monthly cost of your mortgage. But while the down payment amounts are more flexible than ever, hidden fees await you around every corner. So: how much do you really need to buy a home?
In the video above, we break down some of the common costs that can help you plan the amount you will actually need when you sign up for your new home. Can you guess how much money you need to buy a $ 200,000 home? Take a look to find out!
There are several factors that affect your initial home purchase costs:
Advance payment
This should be separate from your emergency fund. If you are in a less competitive market, you may be able to get by with a lower down payment. But in a competitive arena, you may have to be willing to shell out a more substantial down payment.
Professional fees
In addition to closing costs, you will also need to pay fees to realtors, surveyors and lawyers who may be involved in the transaction.
Monthly expenses
You must be prepared for insurance, property taxes, homeowners association fees, and any other service. These additional costs can actually increase the price of a home.
Before you attend another round of open houses this weekend, take another look at the numbers to make sure you’re ready.
This story was originally published in June 2019 and updated in December 2019. Updated again on March 15, 2021 to reflect current styling rules.