Getting Housed With Paul
How much Cash do you need to buy a house: Episode 6
Your expenses will be you earnest money deposit, your inspection, your down payment & closing costs.
Your initial expense will be your Earnest money deposit. This is required when you put in your offer in order to ratify. A buyer is expected to pay 2 – 5 % of the purchase price immediately. This money is held until closing, when it becomes part of the down payment.
The home inspection will be between $300 & $800 depending on the size of the home.
You should also get a termite inspection which is about $150
Next is your down payment. This can technically be as little as 3.5 % if you qualify for an FHA backed loan. The national average is 20%. And of course you can put more down if you got it.
The last item is closing costs, which will range but I would estimate 3% of the sale. This fee includes title insurance, loan-processing costs, & taxes
There is a lot of variation, but my quick answer is you will need about 23% of the asking price in cold hard cash.