You want to become a homeowner, but you're not sure if you have enough money saved to buy a house.
It's important to understand the costs associated with buying a home to understand how much money you need to save. Our real estate agents suggest considering the following costs when calculating how much you need to save:
You decide that you want to buy a $400,000 home and want to make a downpayment of 5 percent; this means you'll need $20,000 for your downpayment.
Closing costs usually equal 3 to 4 percent of your home's value. For a $400,000 home, this is $12,000-$16,000.
Your total estimated homebuying costs are between $34,000-$38,000. Before you start looking at Southport homes for sale, you need to create a savings plan.
Now that you know how much you need to save, you should decide when you're hoping to meet your goal. Then, you can calculate how much you have to save each month and brainstorm options for increasing your income or lowering your expenses.
Assume your house savings goal is $35,000 and that you want to meet your goal in two years. This means that you'll need to save $1,458 a month.
Remember, the cutbacks or extra work required to meet your savings goal aren't permanent. In fact, many financial gurus recommend working to meet your goal in two years or less to prevent burnout.
By diverting unexpected income windfalls and strategically reducing your expenses, you can meet your savings goal faster than you ever anticipated.
Ready to start looking for your ideal home? Contact us today to get started!