Skip to Content
Close Icon

Beachwood Office (888) 801-1666 Open Geo Locator

Your Preferred Branch

Beachwood Change Location

25201 Chagrin Boulevard
Suite 120
Beachwood, OH 44122

Phone: (216) 359-5580
Fax: (216) 359-5581

View Driving Directions

Change Preferred Branch

  • Beachwood Office
    25201 Chagrin Boulevard, Suite 120 - Beachwood

  • Chardon Office
    348 Center Street P.O Box 1078 - Chardon

  • Cortland Office
    3450 Niles-Cortland Road - Cortland

  • Dublin Office
    6215 Perimeter Drive - Dublin

  • Garrettsville Office
    8058 State Street - Garrettsville

  • Lake County Loan Production Office
    8373 Mentor Avenue - Mentor

  • Mantua Office
    10691 Main Street - Mantua

  • Middlefield - Main Branch Office
    15985 East High Street, P.O. Box 35 - Middlefield

  • Middlefield - West Branch Office
    15545 West High Street. P.O. Box 35 - Middlefield

  • Newbury Office
    11110 Kinsman Road, P.O. Box 208 - Newbury

  • Orwell Office
    30 South Maple Street, P.O. Box 66 - Orwell

  • Plain City Office
    490 South Jefferson Avenue - Plain City

  • Powell Office
    10628 Sawmill Parkway - Powell

  • Solon Office
    6134 Kruse Drive - Solon

  • Sunbury Office
    492 West Cherry Street - Sunbury

  • Twinsburg Office
    2351 Edison Boulevard, P.O. Box 560 - Twinsburg

  • Westerville Office
    17 North State Street - Westerville

Contact Us
Online Banking Login


Home Blog How much money do I need to buy a home?

How much money do I need to buy a home?

Posted On: May 10, 2021 by The Middlefield Banking Company in: Budget Mortgages Savings

How much money do I need to buy a home?

With rates continuing to be low, now is a great time to purchase a home! It may seem daunting at first, but it’s a great experience and can be fun if you are prepared. Whether you are a first-time homebuyer or have purchased a home before, keep reading to see how much money you need to buy a home. 

You may not need the full loan amount offered. 

While you can get a loan for a large amount of money, you may not want to get that full amount. Think about all of your other expenses first and the salary you make. Be sure to break it all down and make sure the monthly payment isn’t going to be too much when everything else is added on.

Think about the upfront costs. 

Closing costs can be around three to four percent of your loan or more and it’s nice to try to have a down payment anywhere from ten to twenty percent. If you want to avoid paying additional private mortgage insurance (PMI), you’re looking at a twenty percent down payment. Here are some of the items included in closing costs: 

  • Application fee 
  • Appraisal fee 
  • Title search 
  • Title insurance 
  • Attorney fees 
  • Home inspection 
  • Potential transfer taxes 

These are large upfront costs so it's important to factor them in and begin saving for them. If you work on saving at least twenty five percent of the sale of the home, then you’d be in a good place to cover the down payment, closing costs, moving fees and so forth. You can try to negotiate that the seller pays for your closing costs which could help save you some money – your realtor can help you know if this is a good option or not depending on the circumstances of the area and home. 

Make note of utility, insurance and tax increases. 

If you are moving to a new area, even if it’s across town, utilities, taxes and home insurance prices could all be different than what you currently pay. Be sure you’ve calculated this into your monthly payments as well because it could be a couple hundred dollars more than what you are paying now depending on the new home you are looking at and the area it's in. 

Ask your bank questions so you fully understand what the costs will be. 

If you have any additional questions, or just don’t fully understand what you’d potentially have to pay upfront vs monthly and when those payments would start, ask your bank. We are here for a reason – to help you and create a smooth home buying journey. Our mortgage options suit any need so contact us today with your questions and concerns so we can help put your mind at ease!