I know buyers are excited about finally getting their first home and we as Realtors want to be apart of assisting our clients with one of their families’ biggest purchases. We have to ask the harder questions up front and one of those questions is, “How much cash are you saving?” 

In all of the house buying excitement clients can forget the little things which really is a big thing— CASH FOR CLOSING COST and Down Payment. If your clients are securing an FHA loan, they will need 3.5% down. For example a $99,000 FHA loan will require a $3,465 down payment. USDA loans may allow for no cash needed at the closing table. Conventional mortgages may require a 3-10 percent down payment depending on the client’s credit score and the lender.

If you’re buying your first home ever and moving from a rental home or apartment, remember that you’re transitioning from a Tenant to an Owner and that means that you as an Owner are responsible for whatever breaks, floods, blows out and needs to be repaired. That cost will be coming from you as the Owner of your home. This is another reason why it is a great idea to have money saved because stuff happens and it usually happens when you least expect it. As a new homeowner, you may also want to consider a home warranty to cover appliances and your home heater for the first two years. IF not, CASH will do.


The same rules apply to owning a condo as well. In addition to paying the mortgage when you OWN a condo you are also paying HOA – Homeowner Association Fees – every month so keep that in mind.

When you and your Realtor work together to prepare for your home and you cover all of your money bases, Homeownership will be a great experience from closing to moving in to celebrating your first anniversary.

Happy House Hunting!

Questions, Comments are Concerns are always welcome :).

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