Here we are talking about El Paso Real Estate and How Much Does it Cost to Buy A House. That’s a question I’m frequently asked when I’m out with home buyers and I’m gonna answer that question for you right here.
How much money do you need to buy a house in El Paso
So how much money do you need to buy a house? First of all, I want you to know that the amount you pay to buy a house could vary based on your specific circumstances.
But I’m gonna use an example.
Cost number one your down payment. So how much is your down payment well that depends on the type of loan you choose and the amount that you’re financing.
For example, you could pay as little as zero percent of the purchase price down.
If you’re using a VA loan up to three point five percent. If you choose an FHA loan or you could pay 5% 10% or 20% of the purchase price as a down payment.
In my example a young couple just got married they’re purchasing their home for the very first time. So they’re first-time homebuyers.
They’re gonna use the FHA loan which requires 3.5% of the purchase price as a down payment.
So if they purchase a home for let’s says $180,000 that’s roughly the average price of a home here in El Paso Real Estate right now.
So if they purchase a home for $180,000,3.5% of that it’s going to be $6,300. That’s going to be their down payment.
Next number two we have closing costs. Closing costs will also vary slightly depending on the type of loan you choose and the lender that you choose to finance your home.
Again these are very rough estimates.
In my example, closing costs are going to be $4,500.
$4,500 for closing costs which include the appraisal, which is paid for by the buyer but for the benefit of the lender.
The lender wants to know that the home that they’re financing that they’re paying for is worth at least what they’re paying for it.
So $4,500 in closing costs including the appraisal that’s expense number two.
So expense number three inspection so how much is the inspection. Well, it depends on the company you choose to do the inspection and the size of the house.
Inspections can range anywhere from $250 to $400 it just depends on those two factors.
In my example, the inspection costs $350 so we have sixty-three hundred dollars we have forty-five hundred dollars and we have three hundred fifty dollars.
Those are your primary expenses when purchasing a home yes there may be other expenses that you’ll have to pay.
But those are your primary expenses when purchasing a home and remember these are just examples. Your situation will be unique based on your specific circumstances.
But that gives us a grand total of $11,150. that you have to pay to purchase a home.
Now you might be saying one more test I purchased a home it didn’t cost me that much money or I just talked to my neighbor down the street and they said they didn’t have to pay anything in closing costs.
(Down Payment) Program to Reduce
Well, I’m glad you asked so let’s look at the down payment remember I said every circumstance is different.
If you’re using a VA loan you will typically not have to pay any money down.
If you’re using an FHA loan which typically requires three point five percent down. If you qualify for a grant or a bond or some other type of program that could defray that cost or get rid of it totally you can reduce that cost.
Sometimes down to zero that’s the down payment.
(Closing Cost) Negotiable
Next, let’s look at closing costs these are always negotiable. You may ask the seller to pay a percentage of the closing costs or all of the closing costs.
Reducing it down to zero dollars out of your pocket. Closing costs are always negotiable.
So those are the costs involved in purchasing a home you may be totally comfortable with these figures or they may scare you little I’m gonna ask you not to let these figures scare you.
When I purchase my first home I purchased it with no down payment and no closing costs. So these are just examples of what that could look like for you I suggest you find a great lender and I suggest you find a really good realtor that’s going to negotiate on your behalf.
Thank You for reading my El Paso Real Estate article.