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How Much Money Do I Need to Buy a Home?

Did you know there are programs to help first-time home buyers in Wyoming?

Inventory in the city of Cheyenne and throughout Laramie County is increasing, which means more homes to select from to get the home you desire. Did you know that having credit activity, though, is essential? If you are budgeting to buy a home, you want to know how much money you need, and some of that is related to the need to have credit card activity. These behaviors need to be monitored to build up your credit score and inform financial institutions and lenders of what kind of borrower you are. However, these are also important to qualify for the WCDA First Time Home Buyer program.

Your credit score simplifies how a consumer interacts with debt. A credit card payment, car payment, or school loan payment history gives the bank an idea of how you will manage to pay a mortgage, which is typically a 30-year relationship. The magic number for lenders to invest or qualify for programs is generally 620 or higher. However, this number is just one of a few you need to buy a home, and another is knowing how much cash you need. WCDA will lend more money than they have in the past because of a recent update.

So an example would be someone buying their first home at over $300,000. Their monthly payment would be a little over $2,000 a month. Then the estimated buyer contribution at the closing table would be around $5,500. That said, you would want to have several months of mortgage saved up as a safety net, which is around a range of $7,500 to $10,000 in cash. Also, veterans can use their VA loan in addition to the WCDA, which could take the cash contribution down to around $1,500 and bring down the monthly payment.

We recommend looking into these programs and downloading our buyer’s guide roadmap. This will give you a perspective of when you need the money and all the steps that are included in a successful real estate transaction. Our Broker/Owner, Steve Prescott, explains more about how to buy a home in this month’s Financial Friday episode.

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