How Much Do You Need To Save To Buy a House in 2023?

It's the beginning of 2023! Are you planning on getting a new home this year? While you are saving up for your down payment, do you actually know how much you need to bring to the closing table? Have you heard about closing costs?

What Are Closing Costs?

To make it simple, we broke it down into a formula for you:

Closings Costs = Transfer Taxes + Title Insurance + Realtor Commissions (in some cases) + Lender fees + Settlement Fees

*If you are taking a mortgage, you also need to add escrow, prepaid costs, and home insurance into closing costs.

 Let's Look at an Example

If a house is listed for $300,000 in Western PA. The down payment is about 5%. 

• Listed Price: $300,000
• Down Payment: $15,000 (5%)
• Prepaids & Escrows: $3,000 - $5,000
• Fixed Closing Costs: $9,000 - $10,000 (transfer taxes, title insurance, lender fees, realtor commissions, settlement fees. 
• Final Closing Costs: $29K- $30K

To Sum It Up

Your downpayment is not the only cash you need ready to buy a home! Don't forget to save some room in your budget for closing costs ahead of time. 

 

 

 

 

 

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