The answer always has two parts: your Down Payment and your Closing Costs. I recorded a quick video walking through a real-world example, and here are the highlights.

https://youtube.com/shorts/NzHipIq3gYk?si=0bnE-tWDikahYtxI

Key takeaways

• The money needed to buy a home comes down to two things: the Down Payment and the Closing Costs.
• Closing Costs can range anywhere from about 2.25% to 4.25% of the sales price.
• On a $400,000 home with 3.5% down, that’s roughly $14,000 down plus about $9,000 in closing costs.
• The seller can help with some of the closing costs, and down payment assistance programs can help with the down payment.

How Much Money is Needed to Buy a Home?

Part 1: your Down Payment

In this example, I’m using a home price of $400,000 with a 3.5% down payment. With 3.5% down on a $400,000 price, you’re looking at a down payment of $14,000.

Part 2: your Closing Costs

Closing costs can range anywhere from 2.25% to 4.25% of the sales price. They cover things like:

• Lender fees
• Title fees
• The appraisal
• Attorney fees
• Recording fees
• Escrows
• Homeowners insurance

All of that can add up to a significant amount. In my example, closing costs come to about 2.25% of the price, so right about $9,000.

Money Needed to Buy a Home: an example using $400,000 Sales Price

Home Price	$400,000
Down Payment (3.5%)	$14,000
Closing Costs (about 2.25%)	$9,000
Total Money Needed	about $23,000

Your down payment of $14,000 plus your $9,000 of closing costs brings you the total money needed to buy a $400,000 home in this example.

You may not have to cover it all yourself

What a lot of folks don’t know is that there are ways to help cover the money needed to buy a home. The lender can help with some of the closing costs, and there are several down payment assistance programs out there that can help you with the down payment. So you may not even have to come up with the money needed to buy a home by yourself.

Questions? Call or text me anytime

Knowing the money needed to buy a home ahead of time makes the whole process less stressful. Every buyer’s situation is different, and I’m always glad to run the numbers for your price range and see which options you may qualify for. Call or text me anytime, nights and weekends included, at 214-542-4095. And be sure to follow me for more helpful tips and insights on buying a home.

Rob Kuehne, Branch Manager & Sr. Loan Advisor, AnnieMac Home Mortgage

https://www.TeamRobHomeLoans.com

NMLS# 1785878 | AnnieMac Home Mortgage NMLS# 338923 | Equal Housing Opportunity

This example is for illustration only to help readers understand the money needed to buy a home and is not a loan offer or a commitment to lend. Actual down payment, closing costs, and program eligibility vary by loan program, property, location, and borrower qualifications. Down payment assistance and lender credits are subject to eligibility and availability.