How Much Money Do You Actually Need to Buy a House?

by Alex Mendel

Most people are afraid that it will cost them an absurd amount of money to purchase a home in Boca Raton or Delray Beach. But your down payment doesn’t have to cost you your entire life’s savings!

You may even have enough money to put a downpayment on your first home and stop renting! So, what are your options?

Do I Have Enough Money to Buy a House?

Did you know that there are several loan programs available to you to help you buy a home? Some loan programs require as little as a 3.5% down. So, if you have a $250,000 budget to buy, that means you’d only need about $8,750 to make that a reality.

You may even qualify for programs that don’t require any down payment, like VA loans.

Here are some steps to take to establish whether or not you’re ready to purchase your first home.

1. Establish Needs and Budget

What are you looking for when purchasing your first home? Establish the type (i.e. single-family, condo, townhome, villa, etc.) and the size you need. Bedrooms? Bathrooms? Do you need a backyard? Are you willing to do work to the property or are you looking for something fully upgraded?

Once you have decided on what you’re looking for, as well as the price range based on the market in your desired location, it’s time to look at your finances. If, let’s say, you want to put a down payment of 3.5%, do you have enough money based on your needs and the price?

If your answer is yes, awesome! You can move forward in your search.

If not, you either need to reconsider your needs and budget or create a financial plan to save some more money.

2. Get Pre-Approved!

Many buyers skip over this step and go straight to searching for a home. However, that may lead to some disappointment when you find the perfect house, talk to a lender and realize you can’t get approved for the mortgage.

Talk to a lender before beginning your search, so you know exactly what you can afford with your pre-approval.

Plus, when submitting an offer, you must submit your pre-approval as well to assure the sellers that you are, in fact, financially equipped to purchase the home. Or else, they won’t take your offer seriously.

If you need assistance in finding a trusted local lender in Boca Raton or Delray Beach, don’t hesitate to reach out to us! The Mendel Group has a large, trusted network and will get you connected to a great local lender.

Visit also this link to know more.

3. Find a Trusted, Local Realtor

Now that you know what you want and are pre-approved, it’s time to start your search!

Finding a trusted, local realtor is a crucial step in this process. You need someone who understands the market, understands your needs, and knows exactly how to help you.

Compatibility is also a huge factor to consider. You need a team that works well with your personality in order to have a seamless experience.

Call us at the Mendel Group. We’ll walk you through the entire process, get you in touch with a local sought after lender, advise you on all of your options as you consider to buy a home.

We are here to support you.

We are the key to your next home!