How Much Money Do You Need to Buy a House?

When you think about what it costs to buy a home, you often consider the down payment and monthly mortgage cost. But while down payment amounts are more flexible than ever, hidden fees are waiting for you around every corner. So: How much do you really need to buy a home?

In the video above, we break down some of the common costs that can help you plan for the amount you’ll actually need when you sign off on your new home. Can you guess how much cash you’ll need to buy a $200,000 house? Watch to find out!

Here are a few factors that impact your initial homebuying costs:

Down payment

This should be separate from your emergency fund. If you’re in a less competitive market, you may be able to get away with a smaller down payment. But in a competitive area, you may need to be prepared to fork out a more substantial down payment.

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Professional fees

Beyond closing costs, you’ll also need to pay fees for realtors, inspectors, and attorneys who may be involved in the transaction.

Monthly expenses

You’ll need to be ready for insurance, property taxes, homeowners association fees, and any other maintenance. Those additional costs can really add on to the sticker price for a home.

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Before you visit another round of open houses this weekend, take another look at the numbers to make sure you’re prepared.

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