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Table Of Content What is an excellent credit score? How to Get Pre-Approved for a Home Loan How does the amount of my down payment impact how much house I can afford? Six basic requirements to buy a house How Much Money Do You Need To Buy A House? FAQs The average home buyer can typically expect to spend 2% – 6% of the home purchase price in closing costs, which includes inspections, appraisals and earnest money. Once you add these expenses to the purchase price, the total cost of buying a home starts to snowball. Your mortgage lender will calculate your debt-to-income ratio (DTI) to determine the maximum size of your loan. DTI measures how much of your gross monthly income you spend on debt. Lenders look at the money left over after your regular debts are paid to see how much you can afford for a monthly mortgage payment. If you have an FHA loan, you will almost certainly pay mortgage insurance, which includes a premium upfront and additional premiums built into your mortgage paym...
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