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Do You Have Savings?
Unless you have a spotless credit history and have owned other properties it is likely that your mortgage lender will require a down payment. Typically this is a minimum of 10% of the value of the home. A house that is $150,000.00 may require a down payment of about $15,000.00 up front. Many mortgage lenders require 20%.
There are also other costs involved with the initial purchase that you may need to pay with cash. Many times you can negotiate with the seller, but you should still have about $7,000.00 on hand for closing costs, inspections, taxes, and title transfer fees. Before you begin shopping for a home get your savings account ready. If you don’t have the necessary funds on hand, you may lose out on the chance to buy your dream home.
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