How much money does it take to buy a house in Phoenix?
There are basically 4 groups of costs/fees that you need to think about:
The first check you will likely write is what is called earnest money. It gets used towards your downpayment/closing costs (total bucket–we will discuss later). It is there as basically a deposit. The number totally varies but $1000-$2000 is usually sufficient.
Then, we have inspection and appraisal costs. After you get an offer accepted on a home, you will need to do an inspection. Inspections cost about $500. Once the inspection is completed, the appraisal is then done and that costs around $500 too. So together you are looking around $1000 out of your pocket.
Next up we have closing costs. This is how the lender and title company gets paid. If you have heard of points, escrow fees–that all goes into the bucket of closing costs, and other stuff too. They generally cost between 1-3% of the loan you are getting. So if you are getting a loan for $300,000, they could be around $9,000. Freaking out when you hear that number? When you use the right Realtor though (me) 🙂 we get the seller to pay for all of the closing costs.
Downpayment! The dreaded word when it comes to buying a home. Most people think you need 20% down–ouch! Sure, you can put 20% down but there are a lot of options out there with as low as 0 down, or even 3.5% down. And that can be covered through down payment assistance. On a side note-if you are a veteran there are VA loans that do 0 down and they are great loans.
Total bucket-Plan to have $2000 for the earnest money, inspections and appraisal. And with the right Realtor (me), negotiating for the seller to pay all of your closing costs, and using down payment assistance. So for your total bucket of out of pocket money is $2000. Yes, you can buy a home for only $2000 out of pocket, probably pretty close to what you are paying in rent now. 🙂
Want to stop renting and own a home for as little as $2000 out of pocket?
Fill out the form below, and let’s chat!
Want to search for homes in the Phoenix area?