How To Start Saving Money To Buy A House
Whether you're planning to buy a home now or in a decade, saving for it on an average salary can feel overwhelming.
But Business Insider has helpful saving tips, broken down into small steps to help jumpstart your process.
Their tips, designed to help you figure out your savings timeline include:
Research home prices: A 2500 square foot home in Los Angeles, can cost a lot more than the same space in Texas.
Sites like Zillow, Trulia, and Realtor.com will give you the average price per square foot in the area that you'd like to buy your home.
Find out if you qualify for a government loan: Federal Housing Administration loans allow buyers to put down just 3.5% of the total purchase price.
But you need to come with a credit score of 580 or higher and a debt-to-income ratio below 43%.
Calculate your down payment: Financial experts recommend putting down 20% upfront, if you opt for a conventional mortgage.
Add in additional estimated closing costs: In addition to your down payment, estimate closing costs which can include an appraisal, home inspection, homeowners insurance, and property taxes.