Homes aren’t free! I know, I say this a lot and people always look at me strangely. Actually they look at me strangely a lot, but that’s beside the point here.
I say this because I’ve had more than one contract fall through on a home that I was selling because the first time buyers had no idea that they’d be spending that kind of money up front just to get started.
In order to buy a home you will need cash up front. You’ll need cash for a professional home inspection which can easily run several hundred dollars.
Even if you’re getting a mortgage that requires a very small down payment you’ll need approximately $1,000 in earnest money when you make an offer on a home – and YES they cash the check!
You’ll also obviously need money for the down payment and that amount is up to your lender.
You may need a certain amount for closing costs, depending on what type of negotiation you’ve worked out with the sellers of the home you’re buying.
Finally, your lender will likely require that you keep a certain amount in escrow with regards to your mortgage, because you’ll need to cover several month’s worth of insurance and taxes. This amount can actually vary from time to time depending on how your property values vary.
So you see, there is a lot more involved than just the down payment you manage to scrap together. Yes, you will be expected to write checks once you make an offer on a particular home so keep this in mind as you start to contemplate a home purchase.
I love helping first time home buyers so if you have any questions or would like help viewing an available home please don’t hesitate to contact me at 303.887.1883 or beth@bethskinner.com.
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