26 January 2014

How to buy a house. Step 1

Step 1: Get your finances in order!

You're going to need 20% to put as a down payment (unless you're doing an FHA or HUD purchase), so, figure out how much you think you can afford the house to cost. In my case, I wanted to spend about what I spend in rent right now. Using online mortgage calculators I figured that to be about $165,000.

So if I was not doing a VA loan, that would mean I'd need about $33,000 for a down payment. Then you'll need another $5,000 to $8000 for closing costs.

If you've got that money put away, GREAT!

If not, better start saving, or start thinking FHA.

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