How much is a house really going to cost me? A lot more than you probably think 😉 Although it’s still doable if you’re ready to jump in! I was asked this same question by a fellow reader recently, and thought I’d forward my answer over for anyone else just starting the home buying process:
“Wow, that’s certainly a loaded question! Here are my quick thoughts – First, it’ll probably cost you a lot more than you originally think. Between the down payments (usually around 20% of purchase price these days unless you go FHA or other routes), the closing costs (usually around 3-5% of purchase price), and moving, picking up new furniture & household items, and then future taxes/homeowner dues/condo fees, it gets pretty crazy.
All that said, however, it could definitely be worth it while the prices are so low! If I didn’t already own I’d be all over it (although I surely have my moments). In all honesty, I recommend finding a local realtor and scheduling a meet-and-greet w/ him or her to get all the info. from the beginning. It doesn’t cost a penny (if they say it does, hang up and go somewhere else!), and that person could work on your side to help you through the whole process. As a previous realtor myself, I can tell you it’s well worth your time.
You could also check around other blogs and click on “home ownership” or similar labels to get a general idea as well 🙂 Try mymoneyblog.com – he has a great pool of info. Hope this helps! And good luck, let me know what you end up doing.”