How Much Should You Have Saved Before Buying a House?

You know you need a down payment. But there's more to it than that. Here's the full picture of what you need in the bank before you buy.

Down payment

• VA or USDA: $0 (if you qualify)
• Conventional: 3-5% minimum
• FHA: 3.5% minimum
• Jumbo: 10-20% typically

On a $350k house, 3.5% = $12,250. 20% = $70,000. Big range, but there are options at every level.

Closing costs

Budget 2-5% of the purchase price on top of your down payment. On that same $350k house: $7,000-$17,500.

This covers: loan origination, appraisal, title insurance, credit report, attorney fees, recording fees, and prepaid taxes/insurance.

Cash reserves

Lenders want to see you have money left after closing — typically 2-6 months of mortgage payments in savings. This isn't spent, it just sits there as a safety net.

Moving and setup

Moving trucks, boxes, new furniture, paint, minor repairs, utility deposits — budget $2,000-$5,000 for the first month.

Total cash needed

For a $350k house with 5% down:

• Down payment: $17,500
• Closing costs: ~$10,000
• Reserves: ~$15,000 (3 months)
• Moving: ~$3,000
• Total: ~$45,500

If that sounds like a lot, remember: assistance programs can cover the down payment, and seller concessions can cover closing costs. More on those in other guides.