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?

Yes!

• 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.