How Much Should I Save For My First House?

The average amount is 3% to 6% of the price of the home.

Given that range, it’s a wise idea to start with 2%-2.5% of the total cost of the house, in savings, to account for closing costs.

Thus our $300,000 first-time home buyer should sock away about $6,000-$7,500 to cover the back end of their buying experience.

How much money should I save before buying a house?

Saving 20% of your income could catapult you into purchasing a home in the next 12 to 16 months, depending on your market. For example, if you’re earning $96,000 per year, that’s $19,200 saved after one year. $28,800 saved after a year and six months, which can be plenty of funds to make home-ownership a reality.

How do I save money for my first house?

If you’re saving for a house, here are simple, straightforward steps to get you started.

  • Decide on Your Budget. Prior to even looking at homes, decide what amount you can comfortably afford.
  • Pay Down Your Debts.
  • Pay Your Future Mortgage.
  • Pay Yourself First.
  • Reduce Your Expenses.

When should I buy my first house?

The first thing to do before buying a home is to make sure it’s the right time to do so. Generally speaking, owning a home pays off financially if you will live in it for at least five years. Otherwise, there’s nothing wrong with renting.

How much should I save for a townhouse?

Summary

Down payment10% of $200,000$20,000
Prepaid expenses2% of $180,000$3,600
Utility adjustmentsEstimated$500
Cash reserves$1,200 mortgage payment x 2$2,400
Total cash required$31,000

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