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How Much to Save When Buying Your First Home

It can be hard to know where to begin when deciding to purchase your first-ever home in Massachusetts. One of the hardest decisions is understanding how much you can actually afford on a home. There are numerous factors and expenses that arise when purchasing your first-ever home and it’s important to be properly prepared. In this article, we will go over many expenses to consider for first-time home buyers and how much you should look to save on your new home.

Down Payment in Massachusetts

One of the most asked questions when purchasing your first Massachusetts home is how much money you should save for your down payment. This can be a tricky question for most home buyers and can leave them feeling overwhelmed or stumped. If it is the first time you are purchasing a home then the average down payment is at least 3-6% of the purchase price. However, if you are a repeat buyer then your average down payment is usually 20% or more. Keep in mind that a higher downpayment can help to lower your mortgage and interest payments.

Closing Costs for Your Massachusetts Home

A large cost that most first-time home buyers in Massachusetts forget about is their closing costs. If you are not prepared, then this surprise expense can certainly do some damage and have a large financial impact. The average closing costs in Massachusetts range from 1.3 - 1.56% of the home purchase price. Therefore, depending on the price of your home you can expect to pay large or small amounts on the closing of your home. It's important to keep closing costs in mind when purchasing a home so that you can save up the correct amount of money for your home budget.

Home Inspections

When purchasing a new home it is always important to make sure everything is fully functional and in the shape you expect it to be in. Sometimes you may invest in a home just to find out there is a lot of underlying wear and tear you were not aware of. Therefore, make sure to set aside extra money for a professional home inspection. Home inspections range from $400-$800 and can be even more depending on the overall size of the home.

Investing in Emergency Funds

Lastly, another area that you should be aware of is investing in an emergency fund for your new home as well. When having a new home sometimes problems may arise unexpectedly making an emergency fund a lifesaver at times. It is recommended to save around 3-6 months worth of expenses. This is not a necessary expense however it is an investment that can greatly benefit you and your home in the future.

Get Advice From Waltham, MA, Best Realtor

If you’re a first-time home buyer in the Waltham, MA, area looking for more advice or even your first home then call Hans Brings today! His team will put you on the right path to successfully purchasing your first home in Waltham, MA. Get the most out of your future investment and get in touch with Hans Brings.

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