How Much House Can You Afford? Budgeting for Your First Home
ByOlivier
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One-Time Expenses
Homebuyers should budget for several large upfront costs, including:
- Down payment: A down payment of 3% to 20% or more of the purchasing price of the house may be required.
- Closing costs: Closing costs typically range from 2% to 5% of the purchase price of the home.
- Home inspection and appraisal: Although sometimes optional, inspections and appraisals are strongly advised and frequently mandated by lenders.
- Moving costs: The cost of relocating might vary from a few hundred to several thousand dollars.
- Emergency fund: It’s a good idea to have extra cash on hand for unforeseen maintenance or post-move-in improvements.
