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How Much MONEY Do I Need to Buy A House?
February 27th, 2008 categories: Home Buyer, Sacramento
A Home Buyer called this week and asked, How much money do I need to have to buy a house?
Besides the obvious which is the mortgage loan and a down payment (depending on the loan), there are a few costs when buying a house that are negotiable with the Seller.
The better skilled your Realtor, the better deal you will get and the less out of pocket money you, as the home buyer will spend.
Real Estate of course is local. The following is a guideline for those home buyers buying a house in and around the Sacramento area. Home buyers should be prepared to pay:
- Good Faith Money Deposit
- Home Inspection Costs
These home costs, the home buyer can expect pay.
Good Faith money when buying a house or condo around the Sacramento area is approximately 1% of the offering price on the home for sale. The home Seller has the right to ask the home buyer to apply more toward their deposit.
For example, if the house is $400,000.00, then the home buyer writes a good faith check for $4,000. This money is given to the Title Company who cashes the check once your offer has been accepted by the seller. The $4,000 is applied toward the cost of the house or condo and deducted from your mortgage loan.
Home Inspection costs vary depending on the size of the house. It is always a good idea to have a home inspection to minimize any surprises. A home inspector will identify defects as well as items needing repair and or replacement. The homeowner, seller is not obligated to repair or replace any items but this certainly becomes a valuable tool in the negotiating process.
Are there any other costs toward buying a house? Yes, depending on the house or condo you are thinking of buying. If there is a well, propane tank, property discrepancies, roof inspection and certification, heating and air conditioning inspections plus more. These are just a few of the many inspections when buying a house, land or condo that you may pay for if you want those items inspected.
Each home for sale, condo for sale, land for sale has specific inspections that may be needed. Some home owners will pay for some of the inspections while others cant or wont.
The amount you, as the home buyer pay toward buying a house depends a lot on the real estate professional you have working on your behalf. That is why it is important to have an experienced Realtor.
The home buyer closing costs and down payment are all negotiable. But, should never exceed 6% of the the purchase price.
It is important to note, most short sale homes and foreclosure houses for sale are sold as is. This plays a very important part in what costs the home buyer can expect the seller to pay for.
Real Estate is local and what applies in one State may or may not apply in another.
In order to know how much money a home buyer needs to buy a house it is important to contact your Real Estate professional, your Realtor. Together your Realtor and your mortgage lender will be able to help determine how much money you will need to buy a house.
And as always, every home buyer needs to get qualified by a reputable lender. Then, not only do you know what your house payment will be but the Realtor can write the best offer on the house that you want to buy.
Doesnt that make sense? Dont start looking at houses for sale before you know if and what you can afford to buy and what that house payment will be.
Want to see homes for sale in Sacramento? Check out the Sacramento MLS (the IDX form of the MLS that is free to home buyers- since I pay).
If you have a Real Estate question, check out 
and read what other home buyers and home sellers have asked. Feel free to ask your Real Estate question by email.
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Other Helpful Home Buyer Articles to read:
What are the ABCs of Buying A HoUse?
Sacramento Realtor Talks to Home Buyers
If Mama Aint Happy, Nobodys Happy!
Baby Steps When Buying a House
When Should a First Time Home Buyer Buy a House?
First-Time Home buyers Should Take Advantage of the Buyers Market
New Home Buyer Information You Need to Know
Homeowner Tips and Home Buyer Tips
First Time Home Buyers in Sacramento-Congratulations!
First Time Homebuyers Check-off List-Part 1
First Time Homebuyers Check-Off List-Part II-Write An Offer
