How much should I have saved when buying a home?

As a general rule of thumb, you should always have 3 months’ worth of living expenses on hand, including mortgage, in the event of an unexpected circumstance.

It’s also advised to consider other home-buying expenses such as closing costs.

How much do I need for a down payment?

If you make a down payment of at least 20% of your home’s purchase price, you won’t need to pay PMI.

Depending on the mortgage, down payments lower than 20% are acceptable, and can go as low as 3% in some cases, but you’ll have to pay PMI in addition to your mortgage.

How do I get the best interest rate?

The following will help your chances of getting a lower interest rate:

– Good credit score

– Strong employment history (at least 2 years of work with no gaps)

– As much savings as possible for a down payment. If you make a down payment of at least 20% of your home’s value, you won’t need to pay PMI.

– Consider different types of mortgages. For example, if you can afford higher monthly payments, a 15-year fixed mortgage term will have lower interest rates.

– Shop different lenders to compare rates