Desert 2 Mountain Realty
Desert 2 Mountain Realty
Teresa Whitney, Desert 2 Mountain RealtyPhone: (480) 495-2679
Email: [email protected]

How Much Money Do You Need to Buy a House?

by Teresa Whitney 07/13/2020

The amount of money you will need to ensure you can purchase a house varies based on a number of factors. For example, if you want to purchase a house in a big city, you may need to save more money than you likely would require to buy a residence in a small town. Meanwhile, your decision to choose a fixed-rate mortgage over an adjustable-rate mortgage – or vice-versa – can impact your monthly housing costs. And let's not forget about the costs of home utilities like electricity and water, either.

Ultimately, it helps to put together a homebuying budget before you embark on a house search. Because if you know how much money you have at your disposal, you can map out your house search accordingly. And as a result, you can minimize the risk of spending too much to acquire your dream residence.

Let's now take a look at three tips to help you craft an effective homebuying budget.

1. Evaluate Your Current Expenses

An in-depth assessment of your current monthly expenses is key. If you conduct an expense evaluation, you can find out how much you spend on various must-haves and wants. You then can take steps to reduce your monthly expenses and increase your savings for a new home.

It also never hurts to consult with a financial planner. If you have a financial planner at your side, you can gain expert insights to help you evaluate your current expenses. Plus, you can work with a financial planner to determine the best course of action so you can eventually buy your dream residence.

2. Get Pre-Approved for a Mortgage

Meet with a variety of banks and credit unions and explore your mortgage options – you will be happy you did. If you assess your mortgage options closely, you can find one that complements your finances. And once you get pre-approved for a mortgage, you will know how much you can spend on a house.

Generally, it is beneficial to meet with as many banks and credit unions as you can. If you consult with myriad lenders, you can receive extensive insights into many mortgage options. Best of all, you will be better equipped than ever before to find the lowest-possible interest rate on a mortgage.

3. Consider Your Down Payment Options

The down payment required for a home purchase varies, but it commonly ranges between 5 percent and 20 percent of a house's total price. If you account for a down payment as you craft a homebuying budget, you can use this total to plan ahead for the property buying journey.

Lastly, you may want to collaborate with a real estate agent as you prepare to launch a home search. In addition to helping you find your dream residence, a real estate agent can put you in touch with potential lenders and offer plenty of guidance throughout the property buying journey.

Ready to pursue a home? Use the aforementioned tips, and you create a successful homebuying budget.

About the Author
Author

Teresa Whitney

Hi! My name is Teresa Whitney. I’ve listed and sold many properties in Arizona cities over the years. My success is based on positive referrals. I have earned the respect of my clients by simply being available. I will be the same for you. Having worked in the legal field for 30+ years, I pride myself on my thinking outside the box when it comes to facing hurdles (very common in both the legal and real estate venues) many of which most people do not expect to happen, or want to deal with it if it does. Thus, preparation and research is very important and familiar territory for me to reach that accomplished result based on needs and wants. It is the key to customizing those needs and wants of a client. This is where I come in strong. Being detail-oriented I am a great listener! I understand and work well with both Buyers and Sellers. My passion is real estate is to strive to personalize all of my clients’ needs and wants in the real estate market!