Liquid cash for 1.2M House

Apple
dRLI27

Go to company page Apple

dRLI27
Sep 5, 2021 11 Comments

Hi Blind community, looking to buy my first house in sometime. I have not started any process apart from looking at Zillow and Redfin listing. Wanted to understand how much cash should have for a 1.2M house assuming a 15% down. I am unaware of all the hidden fees and general rule of thumb for amount of cash I need to spend when I buy a house.

Household TC 350k #housing #mortgage

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TOP 11 Comments
  • Apple
    genghis.k

    Go to company page Apple

    genghis.k
    6-18 months of reserves depending on lender. You can use 401k too
    Sep 6, 2021 2
  • Apple
    cQmA53

    Go to company page Apple

    cQmA53
    Have you tried better.com? It helps to breakdown all the fees

    I would put 50k just in case for unforeseen repairs after closing
    Sep 5, 2021 0
  • Microsoft / Product
    wizone

    Go to company page Microsoft Product

    wizone
    Why 15% if you’re already so close to 20% to avoid PMI? Either put 6% down and use the rest as cash on hand to get in the market early or save longer and put 20 down.
    Sep 5, 2021 2
    • Apple
      dRLI27

      Go to company page Apple

      dRLI27
      OP
      Thanks for the input. Please can you explain how the extra cash from 6% allows me to get into the market early?
      Sep 5, 2021
    • Microsoft / Product
      wizone

      Go to company page Microsoft Product

      wizone
      I meant if you’re not gonna put 20 down, put 6 down to buy a house now, and use the other 9% for cash on hand. Else save longer.
      Sep 5, 2021
  • -20% down payment to avoid PMI.
    -6 months backup fund to get loan approved- can do 401k short term loan
    -get pre-approved and know the loan limit. If you plan to buy a house higher than the loan limit, the difference amount.
    -Account for immediate taxes for short term gains
    -Try to keep money for unknown repairs.
    - And few months savings for cushion, which you can slowly grow again.
    General tip - make sure your loan agent knows your immigration status and get a good home warranty
    Sep 6, 2021 0
  • GE
    Jawc04

    Go to company page GE

    Jawc04
    You can’t afford the house you too want in the location you want my friend, get your TC up
    Sep 6, 2021 0