DON’T Buy A House Without Reading This

For first-time homeowners, a down payment of 3% is typically required for most loans, with closing costs averaging around 3%. This means you should prepare for a minimum of 6% in upfront costs.

It’s important to note that the size of your down payment significantly affects your monthly mortgage payments. While a 3% down payment results in higher-than-average monthly payments (the average down payment is about 7%), there is no universally “correct” down payment amount. The appropriate size for your down payment depends on your savings, income, and personal goals.

I recommend using an online mortgage calculator to estimate your monthly payments based on your available savings for a down payment. This will help you decide whether to increase or decrease your down payment amount.

In California, closing costs can range from 2% to 5%. Additionally, while lenders do not require it, having an emergency fund is advisable.

Are you planning to buy your first home in 2024? Comment “YES” and let’s discuss any questions you may have about the home-buying process!

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