Is 20% down more than enough to buy a home?
I get this question asked a lot.
And what I tell everyone is In order to be able to afford a home, it is important that you have more than just 20% of the cost saved up for the purchase.
While having 20% down may seem like enough money to make the initial investment, there are many other costs associated with purchasing a home.
For instance, some additional costs include the down payment, closing costs, property taxes, homeowner’s insurance, mortgage prepaid, interest, and home maintenance costs, if the property has an HOA then you will need to pay homeowner’s association fees and title and escrow fees.
Additionally, your credit score will also have an impact on the interest rate that you qualify for when applying for a mortgage. A higher credit score can help you get a more favorable interest rate, which will in turn make it easier to afford your monthly mortgage payments.
So plan ahead and if you are considering to buy a home. It’s always good to start the conversation with a real estate agent sooner than later.