What to save for when preparing to buying a home

Buying a home is exciting, but let’s be real—figuring out what costs to plan for can feel overwhelming. The good news? It doesn’t have to be. We’re here to help you understand exactly what you need to save for so there are no surprises along the way.

Here’s a breakdown of the key expenses to prepare for:

1. Down Payment

First up—your down payment. You’ve probably heard you need 20% down, but that’s not always true. Depending on your loan type, you could put down as little as 3% on a conventional 3.5% or even 0% for VA and USDA Rural Development loans. Some lenders have in-house loans that are also lower down payment options. The right lender will help you understand your options and any down payment assistance programs you might qualify for.  

We can connect you with a lender who’ll walk you through what’s best for your situation. No guesswork, no stress—just real numbers that fit your budget.

2. Earnest Money Deposit (EMD)

Think of an earnest money deposit as a way to show sellers you’re serious. This upfront deposit (typically 1-2% of the home price) gets credited toward your final purchase, so it’s not an extra expense—but it is something you’ll need to have ready when making an offer.

Not sure how much you should put down? We’ll walk you through that based on your price range and the competition in the current market.

3. Inspections

Home inspections are a must when buying a home, and they come with their own costs. A general home inspection starts around $550, and additional inspections—like termite, radon, sewer scope, or structural evaluations—will add to that cost.

These inspections help you understand the home's condition before you buy. While they’re an upfront expense, they can save you from major surprises (and costly repairs) down the road. We’ll help you figure out which inspections make sense for your situation.

4. Appraisal

An appraisal is a lender-required evaluation of the home’s value, typically costing $500-$700, depending on the property. This is paid upfront at the time of the appraisal, with your lender.

Your lender will coordinate the appraisal, but we’ll make sure you understand the process and what to expect.

5. Closing Costs

Closing costs cover things like lender fees, title insurance, escrow fees, and other administrative costs related to finalizing your loan. These typically range from 2% to 3% 5% of the loan amount. Your lender will provide a detailed breakdown of these costs upfront so you’re not caught off guard.