How Much Money Do I Need to Buy a House?

Everyone wants a clean number. The honest answer is that it depends — but here is how to figure out what it actually is for you.

Most buyers think about the down payment. That is the big check you write at the beginning. But there is a second number that catches almost every first-time buyer off guard: cash to close.

Cash to close is not the same as your down payment. It is the total amount you bring to the closing table — and it is almost always higher than people expect.

Here is what that looks like with real numbers

Say you are buying a $400,000 home with an FHA loan and 3.5% down. Your down payment is $14,000. Clean and simple. But your cash to close is not $14,000.

Add closing costs — which typically run between 2% and 5% of the loan amount — and you are looking at $20,000 to $26,000 total just to get to the closing table. That is a $6,000 to $12,000 gap that most buyers did not see coming.

What closing costs actually cover

Lender fees for originating and processing your loan. Title insurance to protect ownership. The appraisal to confirm the home's value. Prepaid interest from your closing date to the end of the month. And escrow setup — your lender collects several months of property taxes and homeowner's insurance upfront to fund your escrow account.

Some of these costs are negotiable. Some are fixed. And some can be offset through seller credits — where the seller agrees to contribute toward your closing costs as part of the deal.

Then there is the number almost no one plans for

After closing, you need money left over. Not a lot — but something. The week after you move in, something always comes up. A repair. A utility deposit. Moving costs that ran over. Arriving at closing with every dollar you have spent is a real risk.

Even a $2,000 to $3,000 cushion after closing changes how your first months in the home feel.

A realistic starting point

Down payment of 3% to 5% for most FHA or conventional options. Add 2% to 3% of the purchase price for closing costs. Then add a post-closing reserve. On a $350,000 home, you are likely looking at $25,000 to $35,000 needed — but your actual number depends on your loan type, credit, location, and how the deal is structured.

The only way to get your real number is to run the actual math on your actual scenario.

Ready to find out exactly what buying looks like for you? Start your mortgage application and we will walk through every number together.