How Much Should You Have Saved To Buy Your First Home

Thus our 300 000 first time home buyer should sock away about.

How much should you have saved to buy your first home. Cathy derus cpa and. You also need to determine how much home you can really afford. It is usually expressed as a percentage of the purchase price of the property. If you add in moving fees of 1 500 usd the grand total you ll need to have saved when you buy is. The down payment can range from 3 5 percent to 20 percent of the total cost of the home depending on your credit score mortgage interest rate and current financial situation.

It s 38 400 after two years and 57 600 after three. Other experts advise that your home cost no more than two and a half times your annual salary. For that reason you want to be sure you still have some money saved up after the down payment. This is the only cash outlay in the home buying process that s obvious to most buyers. Bera suggests putting 5 000 to 10 000 into a home maintenance fund to cover those initial costs.

If you re buying a home that s over 10 years old you re likely going to have to fix something in the first year that you re in there dabit says. Moving forward you should also put some money aside every year for repairs and maintenance to the. As soon as you know exactly how much you need to have saved up to buy your house divide that by the number of years you plan to save for. Depending on which state you re buying in and the price of the home you re purchasing first home buyer concessions can shave off many of the extra costs normally associated with buying a home. Even if you need 20 down these amounts are roughly enough to help you buy homes worth between 100 000 and 300 000 within three years.

Given that range it s a wise idea to start with 2 2 5 of the total cost of the house in savings to account for closing costs. For example if you re earning 96 000 per year that s 19 200 saved after one year. 4 figure out when you want to buy your home. If you have enough to put 20 on one home but 10 on another the cheaper home will give you more bang for your buck. That s the easy part.

A good rule of thumb is to keep your mortgage along with your taxes and insurance between 25 and 30 percent of your income.