How Much Money Do You Need to Buy a Home in Fort Collins, Colorado?
Are you considering moving to Fort Collins, Colorado? Wondering how much money it takes to buy a home? In this blog post, I’m going to talk to you about what it costs and how much it takes to buy a house in Fort Collins.
The median sales price in Fort Collins comes between $450,000 - $460,000. With that said, there are still some great houses for less than 400,000. For example, the cheapest house in 2020 was sold for $207,000. Truth be told, it was a dump, and it needed a ton of work. The second least expensive house was sold for $225,000. Again, let me remind you that we’re not the cheapest place to buy a house, but there are some great housing opportunities.
What does it take to buy a house in Fort Collins, Colorado?
To buy a house with a conventional loan, you’re going to need 3% - 20% down. Obviously, if you want to put more than 20% down, you are welcome to.
However, if you put less than 20%, you’re going to be paying private mortgage insurance (PMI) which is between $150 - $200 in addition to your monthly mortgage expense.
So the actual dollar figure that will take you to buy a median house here is at least $13,500.
If you’re looking for a lower price point, you could find a house for about $325,000 - $375,000 in a good area in a good condition, but it might need a little bit of sweat equity.
Let’s just say for $375,000 you could get in at a $10,500 down payment.
How much money do you need to buy a house in Fort Collins?
I remember when I bought my first house I didn’t understand what the closing costs are. But they are real and they are going to come at you whether you like it or not.
Closing costs are essentially comprised of prepaid expenses, interest, insurance, fixed fees, your appraisal, lender fees, and things of that nature. Those are all going to be due and they’re going to be about 1.5-2 percent of your loan value.
So if you’re putting 3% down comparatively to 20% down, you’re going to have a little bit more closing costs because you’re doing more prepaids and because your loan and mortgage are going to be more expensive.
With a 3% down and a $400,000 house, you’re going to have about $8,000 worth of closing costs.
So all things considered, it’s going to cost you between $20,000 - $97,000 to buy a house here in Fort Collins, Colorado.
I strongly recommend having 3-6 months’ worth of mortgage fees saved up. In 2020, we realized how important it is to have savings that you have to have a little extra money in the bank to get you through three to six months.
Also, if anything gets broken, you have to realize you’re now responsible for that home so it’s best to have some money saved up.
Other than that, those are the main costs that are going to take you to buy a house.
Hopefully, this article helped you understand what it’s going to cost you to buy a house here in Fort Collins, Colorado. If you want to hear my experience buying a house in Fort Collins, watch my video below and subscribe: