How to Save for a House
It can feel intimidating or even impossible, especially for a first-time home.
However, there is no need to fret. If you’re wondering how to save for a house, you’re in the right place!
Buying a home may be the biggest purchase a person can make.
Thus, the two main costs you need to save up for are down payment and the closing costs.
You most likely will work with a bank to finance your home purchase.
A down payment is an out-of-pocket expense a homebuyer will pay when financing a purchase.
When financing a home purchase, there are several closing costs, such as an appraisal fee, termite inspection, etc.
Although moving expenses are not as large as a down payment, it is still a cost that buyers should save up for.
The general rule of thumb is that the mortgage payment should be no more than ⅓ of your monthly household net income.
How Much Can You Afford?
It’s best to save money in a high-yield savings account, such as a money market account.
Where to Save Your Money