The Dramatic Impact of Homeownership on Net WorthIf you're trying to decide whether to rent or buy a home this year, here's a powerful insight that could give you the clarity and
What’s the Cost of Buying a Home in Peoria, AZ?
Dated: July 18 2022
Buying a home is an exciting and celebratory milestone - it’s virtually synonymous with “the American dream.” But when you’re deciding whether you’re financially ready to buy a home, it’s vital to account for the upfront costs and expenses you’ll incur after closing.
Saving up for the initial costs, such as down payment, is extremely beneficial, but your bank account should be well-braced for the bills you’ll have to pay every month.
If you’re considering becoming a homeowner in Peoria, AZ, here’s a list of the costs you’ll incur when buying a home:
The largest cost you’ll incur when buying a home is the upfront down payment. Typically many mortgage types require at least 3% of the home’s purchasing price as a down payment. But other loans, such as VA and USDA, don’t require a down payment.
Pro Tip: Paying at least a 20% down payment can help you avoid another cost: PMI (private mortgage insurance).
To close on a property and get the keys to your new home, you’ll need to pay closing costs. Typically, these range between 2%-5% of the total home price and can include:
Home appraisal and inspection fees
Credit check fees
Origination and underwriting fees
Title insurance and search fees
Prorated property taxes
Once you become a homeowner, you’ll be responsible for additional ongoing bills. You’ll have to pay local property taxes, home insurance policy premiums, and HOA fees. Moreover, you’ll assume full responsibility for your home’s repair, maintenance, and upkeep, which could cost you at least 1% of your home’s value annually.
Understand the Cost of Buying a Home in Peoria, AZ!
To figure out how much money you actually require to buy a home, consider both the one-time and ongoing expenses. And if you’re ready to buy a home in Peoria, AZ, reach out to us at (602) 290-0950 today! Our team of experts has been helping clients find their dream homes in Peoria for years - and we’d love to do the same for you!
Chris Collins Representing homeowners and future homeowners in Arizona, Chris is committed in listening to the needs of his clients an....
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