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JONATHAN: First-time homebuyers, when they think of down payment, they think
that that's the only dollar amount that they're going to have to bring to the table, and that's
definitely not the case. So in addition to down payment, there's going to be a fee that
the lender charges you, an origination charge.
You're also going to have to factor in title insurance, title fees, recording fees, and
then typically you also pay your homeowner's insurance a year in advance up front, so you're
going to have to kind of factor in your down payment plus X amount of dollars for other
costs at kind of the end of the road.
SABRA: You're buying a house, you're looking at buying a house, and you're trying to think
of whether you can afford it. So I would just section up your money, like have one bucket
for the down payment.
TOM: You want that to be as high as you can, as much as you can afford to spend, but you
don't want to run a risk of if you have an emergency fund, you don't want to put your
emergency fund into your down payment. And then if you need extra money for little things
that come up once you're the owner of the house and you didn't know that the plumbing
needed replaced, or you didn't know that you have to buy a new front door or whatever it
is; you don't want all your down payment money to be gone.