The Real Cost of Buying a Home: How Much Should You Save Before You Buy?
The Hidden Costs of Homeownership
Buying your first home is an exciting milestone—but it also comes with a number of hidden costs that first‑time buyers often overlook. This guide helps you understand the full financial picture and gives you practical steps to start saving today.
Major Costs to Plan For
Down Payment
FHA: 3.5%
Conventional: 5%–20%
Example: $14,000–$80,000 on a $400,000 home
Closing Costs
2%–5% of home price
Example: $8,000–$20,000 on a $400,000 home
Emergency Fund
2–3 months of mortgage payments
Example: $4,000–$6,000
Moving + Setup Costs
Movers, deposits, furniture, repairs
Estimate: $5,000–$10,000
How Much Should You Save in Total?
Estimated Range (on a $400,000 home): $32,000–$50,000
This amount varies based on your loan type, lifestyle, and market—but planning ahead will help you buy with confidence.
Smart Savings Strategies
Automate It
Set up recurring monthly transfers to your savings account.Cut Costs
Cancel unused subscriptions and eat out less.Boost Income
Try side gigs, freelance work, or sell unused items.Use Windfalls
Redirect tax refunds, work bonuses, and gifts into your home fund.
Create Your Personalized Plan
Add your costs to the lines below to find your total savings goal.
Estimated Closing Costs:
Emergency Fund:
Moving/Setup:
Final Tips & Encouragement
Get pre‑qualified early to understand your actual price range.
Revisit and adjust your savings plan monthly.
Don’t forget to plan for furniture, property taxes, and insurance.
The more prepared you are, the faster you can move when the right home comes along.
