Your budget must cover more than just the down payment. These one-time costs are due at or before closing:
: Most lenders recommend that your total monthly housing payment—including principal, interest, taxes, and insurance (PITI)—should not exceed 28% of your gross monthly income . buying a house budget planner
: A professional inspection typically costs $300–$500 and is essential for identifying costly structural or mechanical issues. Your budget must cover more than just the down payment
: Expect to pay between 2% and 5% of the home’s purchase price . This covers loan origination fees, title insurance, appraisal fees, and recording fees. : Expect to pay between 2% and 5%
Before looking at listings, establish your "magic numbers" based on established financial guidelines:
: A broad starting point is to look for homes priced at 3 to 5 times your annual household income . 2. Upfront Costs: The "Cash-to-Close"
: While 20% is the gold standard to avoid Private Mortgage Insurance (PMI), programs like FHA loans allow as little as 3.5% down .