Savvy home buyers understand that purchasing a home costs significantly more than the final offer a seller accepts. If you are a first time home buyer, you might be tempted to stretch your budget to its limits in order to obtain the house of your dreams. However, this decision can set you on a path leading to a mortgage payment that you might struggle to afford.
Leaving a sizable buffer between what you can afford for a home and what you pay for a home is a wise home-buying strategy. Added on top of the price of the home are the closing costs, attorney's fees, and lender's fees. Approximately 3-5% of the purchase price is added for closing costs and lender's fees, which can include loan application and credit report fees, property appraisal costs,
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