Exactly How Much Money You Need to Buy a House in Lake Charles

May 3, 2023

By Candice

Despite the often long and complicated process, buying a new home is almost always an exciting adventure. But there’s that small matter of money that usually dampens the excitement. Many home buyers, especially first-time buyers, just don’t realize the true cost of buying a house and how much money they’ll need – but that’s something they need to know. So read on to discover exactly how much money you’ll need to buy a house in Lake Charles.

Standard Costs of Buying a House

To get a better handle on how much you’ll need to buy a house in Lake Charles, it pays to be aware of the standard costs you’ll be facing. Here’s a breakdown of the typical costs…

Down Payment

“Simply put, a down payment is the cash a home buyer pays upfront in a real estate transaction. It’s a percentage of the home’s purchase price, and though mortgage lenders once required a 20% down payment, this is no longer the case. In fact, the average down payment is actually much less. Today, you can get a mortgage for as little as 3% down. But although a 20% down payment may not be required, it isn’t without its advantages if you can afford it. Making a larger down payment may mean securing a lower interest rate and avoiding paying for private mortgage insurance (PMI).”

To discover more about down payment options and assistance programs, you can consult a Lake Charles agent. Just call (337) 305-8040 to speak to an experienced agent.

Earnest Money Deposit

A significant expense you’ll encounter when you buy a house in Lake Charles or anywhere else are the costs you’ll incur at closing. Closing costs come in at around 2% to 6% of the home’s purchase price. 

Closing costs typically include (but are certainly not limited to). . . 

Closing Costs

This is a deposit whose primary purpose is to assure the seller that you are in fact a serious buyer. Basically, when you put down your earnest money, you then have skin in the game. 

The earnest money deposit is usually “1% to 2% of the home’s purchase price. Though these deposits aren’t usually required, they’re customary and can set you apart, particularly in a competitive market.”

  • Appraisal fee

  • Title fees

  • Mortgage origination fee

  • Mortgage application fee

Prepaid Costs

In addition, “you sometimes must prepay certain expenses such as property taxes, homeowners insurance or mortgage interest. Your mortgage lender will likely have you make an initial escrow deposit that they’ll put into an account for you. Your lender will then use the escrow account to pay any property taxes, interest, or insurance premiums when they come due.”

Mortgage Payments

And, of course, there are the monthly mortgage payments, the main components of which are the “payment towards your principal balance (the total amount borrowed for the home loan) and towards interest.” Some of each payment will also be for taxes and insurance.

If you put less than 20% down, you may also have to pay for private mortgage insurance in your mortgage payments. “The cost of mortgage insurance depends on your loan type, down payment amount, credit score, and many other factors, but it can add $100 a month or more to your mortgage payment.”

Additional Costs to Consider

Besides the standard costs delineated above, you will likely have other costs you should factor in when determining how much you’ll need to buy a house in Lake Charles. These include (but again are not limited to) . . . 

Moving Costs

Even moving to a new neighborhood in the same city can get pretty pricey. “The average cost of a local move is around $2,300, while a long-distance move (over 100 miles) averages around $4,300.”

HOA Fees

If the new home is in a community with a homeowners association (HOA), you will probably have to pay monthly or quarterly HOA fees.

Home Maintenance/Repairs

All homes require regular maintenance, and most homes need at least some repairs. Experts say the cost of maintenance and repairs typically amounts to about 1% to 3% of the purchase price annually (depending, of course, on age and condition).

Example Breakdown of Costs

To better understand exactly how much you’ll need to buy a house in Lake Charles, take a look at this example breakdown of the home-buying costs.

Suppose the purchase price of the home is $350,000. Here’s what you’ll be looking at . . . 

  • 20% down payment – $70,000

  • Closing costs – p $7,000 to $17,500

  • Moving costs (under 100 miles) – an average of $1,638

  • Total – $78,638 to $89,138

But if you’re willing to pay for PMI by making a significantly smaller down payment of, say, $17,500, you could decrease the cost by $52,500.

Get the Help You Need to Buy a House in Lake Charles

And that last point shows why it’s so critical that you work closely with an experienced Lake Charles agent. A good local agent can help you find ways to decrease the cost when you buy a house. So if you plan to buy a house in Lake Charles and are concerned about the money aspect, be sure to contact us today at (337) 305-8040.

Exactly How Much Money You Need to Buy a House in Lake Charles

May 3, 2023

By Candice

Despite the often long and complicated process, buying a new home is almost always an exciting adventure. But there’s that small matter of money that usually dampens the excitement. Many home buyers, especially first-time buyers, just don’t realize the true cost of buying a house and how much money they’ll need – but that’s something they need to know. So read on to discover exactly how much money you’ll need to buy a house in Lake Charles.

Standard Costs of Buying a House

To get a better handle on how much you’ll need to buy a house in Lake Charles, it pays to be aware of the standard costs you’ll be facing. Here’s a breakdown of the typical costs…

Down Payment

“Simply put, a down payment is the cash a home buyer pays upfront in a real estate transaction. It’s a percentage of the home’s purchase price, and though mortgage lenders once required a 20% down payment, this is no longer the case. In fact, the average down payment is actually much less. Today, you can get a mortgage for as little as 3% down. But although a 20% down payment may not be required, it isn’t without its advantages if you can afford it. Making a larger down payment may mean securing a lower interest rate and avoiding paying for private mortgage insurance (PMI).”

To discover more about down payment options and assistance programs, you can consult a Lake Charles agent. Just call (337) 305-8040 to speak to an experienced agent.

Earnest Money Deposit

A significant expense you’ll encounter when you buy a house in Lake Charles or anywhere else are the costs you’ll incur at closing. Closing costs come in at around 2% to 6% of the home’s purchase price. 

Closing costs typically include (but are certainly not limited to). . . 

Closing Costs

This is a deposit whose primary purpose is to assure the seller that you are in fact a serious buyer. Basically, when you put down your earnest money, you then have skin in the game. 

The earnest money deposit is usually “1% to 2% of the home’s purchase price. Though these deposits aren’t usually required, they’re customary and can set you apart, particularly in a competitive market.”

  • Appraisal fee

  • Title fees

  • Mortgage origination fee

  • Mortgage application fee

Prepaid Costs

In addition, “you sometimes must prepay certain expenses such as property taxes, homeowners insurance or mortgage interest. Your mortgage lender will likely have you make an initial escrow deposit that they’ll put into an account for you. Your lender will then use the escrow account to pay any property taxes, interest, or insurance premiums when they come due.”

Mortgage Payments

And, of course, there are the monthly mortgage payments, the main components of which are the “payment towards your principal balance (the total amount borrowed for the home loan) and towards interest.” Some of each payment will also be for taxes and insurance.

If you put less than 20% down, you may also have to pay for private mortgage insurance in your mortgage payments. “The cost of mortgage insurance depends on your loan type, down payment amount, credit score, and many other factors, but it can add $100 a month or more to your mortgage payment.”

Additional Costs to Consider

Besides the standard costs delineated above, you will likely have other costs you should factor in when determining how much you’ll need to buy a house in Lake Charles. These include (but again are not limited to) . . . 

Moving Costs

Even moving to a new neighborhood in the same city can get pretty pricey. “The average cost of a local move is around $2,300, while a long-distance move (over 100 miles) averages around $4,300.”

HOA Fees

If the new home is in a community with a homeowners association (HOA), you will probably have to pay monthly or quarterly HOA fees.

Home Maintenance/Repairs

All homes require regular maintenance, and most homes need at least some repairs. Experts say the cost of maintenance and repairs typically amounts to about 1% to 3% of the purchase price annually (depending, of course, on age and condition).

Example Breakdown of Costs

To better understand exactly how much you’ll need to buy a house in Lake Charles, take a look at this example breakdown of the home-buying costs.

Suppose the purchase price of the home is $350,000. Here’s what you’ll be looking at . . . 

  • 20% down payment – $70,000

  • Closing costs – p $7,000 to $17,500

  • Moving costs (under 100 miles) – an average of $1,638

  • Total – $78,638 to $89,138

But if you’re willing to pay for PMI by making a significantly smaller down payment of, say, $17,500, you could decrease the cost by $52,500.

Get the Help You Need to Buy a House in Lake Charles

And that last point shows why it’s so critical that you work closely with an experienced Lake Charles agent. A good local agent can help you find ways to decrease the cost when you buy a house. So if you plan to buy a house in Lake Charles and are concerned about the money aspect, be sure to contact us today at (337) 305-8040.

Sell It Like A Saint Realty Group / Who Dat Property Management

Sell It Like A Saint Realty Group / Who Dat Sales And Rentals LLC
Lake Charles, Louisiana
Phone: (337) 305-8040

Sell It Like A Saint Realty Group / Who Dat Property Management
Lake Charles, Louisiana
Phone: (337) 305-8040

Sell it Like A Saint Realty Group/Who Dat Property Management is owned and operated by Candice Menard. She

is a broker in the State of Louisiana and a licensed agent/broker in the state of Mississippi. Candice a leading

authority in the real estate market-both sales and rentals in the lake area. She and her team are happy to assist

with your real estate needs.

Sell it Like A Saint Realty Group/Who Dat Sales and Rentals LLC is owned and operated by Candice Menard. She is a broker in the State of Louisiana and a licensed agent/broker in the state of Mississippi. Candice a leading authority in the real estate market-both sales and rentals in the lake area. She and her team are happy to assist

with your real estate needs.

© 2025 Sell It Like A Saint Realty Group