Why You Need More Than Just the Down Payment

Why you need to save up more money than just your down payment.

You’re looking to buy a home, and you’ve saved up all the money for the down payment. Did you know there’s one other thing you need to look out for if you’re getting a loan? 

Anytime you buy a home and get a loan, there will be fees. Many buyers assume their down payment is all the money they have to bring to closing, and while that would be great, it’s not the case.

"Don’t make the mistake of just bringing money for the down payment."  

Lenders will have charges like origination fees, buy-down fees, and more. You might have to pay anywhere from $1,000 to $10,000. You’ll also have to pay your homeowners insurance and tax upfront here in Colorado. You might have to pay up to 12 months’ worth of insurance at closing, which the lender will then put in escrow. On top of that, you’ll be responsible for three to six months of taxes.

When you’re planning to buy a home, always talk to your lender about what their fees are, what expenses they expect, and the total amount. Don’t make the mistake of just bringing money for the down payment. 

One final thing to remember is that different lenders have different fees. Always shop around, and if you want to know some lenders with low fees, we’d love to give you some recommendations.

If you have any questions, feel free to call or email us. We’d love to hear from you.

Post a Comment