Expected The Unexpected When Buying A Home
I mentioned this before but here is another article about having money left over after closing in case something goes wrong with a home. Many think just because their new estimated mortgage payment will be the same as they are paying in rent that they are better off buying home. That isn’t always the case. You need to have money saved.
Just because FHA only requires 3.5% down and nothing left over after closing doesn’t mean that is okay. Can you think of any other time our government has let us down? Also, I don’t care how much you put down you need to have reserves even if that means putting less money down and having mortgage insurance.
“Homeowners should have 1 percent of the purchase price of their home in savings for improvements and surprise expenses, he said. “That is the absolute minimum. It’s better to have 2 percent to 3 percent socked away somewhere.”