As for closing costs, according to Bank rate’s latest survey, the national average for closing costs for a $200,000 mortgage is $2,084. Expect to save at least 10% of your mortgage for these fees. Don’t let these numbers get you down. Start saving and do some research, because you can find down payment assistance online, and it’s more readily available for first-time home buyers. If you’re searching for your first home in a buyer’s market, you can also likely have the seller pay a portion of the closing costs as part of your negotiations.
STEP 3: BUILD UP Y UILD UP YOUR SAVINGS ACCOUNT
Don’t forget to build up your regular savings account — not just for a down payment, but for a little “cushion.” This will not only improve your chances of being approved for a loan — lenders like to see that you have money set aside and aren’t just living from paycheck to paycheck — but will also ensure that you can pay your mortgage in case of job loss or major unexpected expense. A savings account can also help with maintenance and repair costs on your home. According to Bankrate.com, “a good rule of thumb is to assume that you’ll spend 2.5 to 3% of your home’s value each year on upkeep and repairs. If you buy a $250,000 home, aim to save $520 to $625 per month.
STEP 4: RESEARCH HOME SALES ME SALES AND WHAT YOU CAN AFFO U CAN AFFORD
Do some research into recent home sales in the area in which you’re interested in buying a home. Find the average price, the highest prices, and the lowest prices. Look into how long they’ve been on the market. Determine what you want in a home (e.g.,
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