How Much Money to Save Before Buying a House

Do you dream of owning a house one day?  If so, you may be wondering how much money to save before you buy.

The total amount you will need to save varies greatly from person to person.

There are many different ways to buy a house.  Most people pay in cash or take out a mortgage to finance their home.

If you plan to take out a mortgage, the best bet is to try to save 20% of your home's expected purchase price for a down payment.

Conventional mortgages typically require at least 3% down, while an FHA loan requires a 3.5% down payment.

If you served in the military, you may qualify for a VA (Veteran Affairs) loan.  VA loans don't require a down payment.

Even though these loan types don't require 20% down, it's best to save as much as possible when buying a home.

When you don't have a 20% down payment, certain loan types require an extra monthly cost called PMI (private mortgage insurance).

In addition, there are other costs and fees associated with home buying you will want to consider when determining the amount of money to save.

Swipe up to learn more about these costs and tips for saving money for your down payment!