how much money do you need to buy a house in 2022?
Assuming that you want to purchase a $300,000 house and have mortgage payments around $1,500 to $1,800 a month, you may be able to buy a house with as little as $18,000. If you have $27,000 you are even more likely to be able to purchase a $300,000 house.
what do i need to save for when i buy a house?
Here’s a breakdown of how that money will be used:
- $9,000 will go towards the down payment on your mortgage
- $7,700 will go towards your closing costs
- $800 for the inspections
- $500 for the appraisal
Add these together and you’re at $18,000
In addition to the core expenses, here are some other considerations:
- $3,000 for moving costs
- 1-2% of the purchase price or $3000 - $6000 in reserve for repairs and upgrades.
- Most properties are selling as-is, and you’ll likely want a few new appliances.
Add these together and you’re at $9000.
That puts us at a working budget of $27,000 – or a need to save up $75 per day for one year to purchase a house.
how to save enough money to buy a house
If you are starting from scratch, you’ll need to save between $50 and $75 per day for one year. That’s somewhere between $18,000 and $27,000. Our estimate will allow you to purchase a $300,000 house and have mortgage payments somewhere in the range of $1500 - $1800 per month depending on your interest rate.
is there any way to reduce these upfront costs?
- You can purchase a more affordable property.
- The seller can contribute towards your closing costs.
- You can take steps to be eligible for grants and incentives.
what if $75 per day is too hard to save?
Break your goal into a budget you can manage.
You may need more than one year to save up. For example, if you saved $20 per day, you’d be ready to purchase a house in 3.5 years.
how did we come up with $300,000 for a home in baltimore?
For purposes of calculation, we used a $300,000 house in Baltimore City being purchased with a conventional loan that requires a 3% down payment. The estimates we are providing are to stimulate your thinking.
what to do when you're ready to purchase a home in baltimore?
When you are ready, we’re ready. Let’s have a conversation about your vision.
It’s never too soon to plan to purchase a home.