Buying a House Will Cost Me HOW Much?!

Buying a House Will Cost Me HOW Much?!

Buying a house is usually the most expensive and important financial decision you will ever make…and on average, you’ll need a few thousand bucks right up front! Let’s break it down:

In Polk County, Florida the median sales price (seasonally adjusted) is $185,000 as of December 2018, according to Zillow.

The most popular loan program for first-time home buyers is an FHA-insured loan, which requires a down-payment of 3.5% of the sales price.

This means for the typical buyer in Lakeland and Polk County, you will immediately need $6,475 (185000 x .035)!

I’ll repeat:

For the most popular loan type at the median purchase price in this area, you will need more than six thousand dollars.

That’s a lot of money! And that amount doesn’t even include closing costs and prepaid expenses!

Typical closing costs and prepaid expenses (appraisal, inspection, survey, etc.) usually add up to about 3% of the loan amount. In this case, $5,550 (185000 x .03).

So in our scenario here, your estimated total required “cash to close” amount will be $12,025 .

Write this down: The average home buyer in Lakeland, Florida will need twelve thousand dollars up front in order to purchase a home.

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