How Much Cash Do You Actually Need to Buy a Home?

One of the most common questions I hear from buyers is: "How much money do I actually need to have saved?" The answer is more than just the down payment, but it is usually less than people fear.

Let me break down the real numbers so you can plan with confidence instead of guessing.

The Down Payment

This is the big one most people focus on, and for good reason. In Central Ohio, here is what you can typically expect:

• Conventional loan: As low as 3% for first-time buyers, 5% for repeat buyers.
• FHA loan: 3.5% down payment required.
• VA loan: 0% down for eligible veterans and service members.
• USDA loan: 0% down for eligible rural properties.

On a $250,000 home with a conventional loan at 5% down, that is $12,500. On a $350,000 home, it is $17,500.

Putting 20% down ($50,000 on a $250,000 home) lets you avoid Private Mortgage Insurance (PMI), which adds $100-$200 per month to your payment. But it is not required, and many buyers choose a lower down payment and invest the difference.

Closing Costs

Closing costs typically run 2% to 5% of the purchase price. On a $250,000 home, that is $5,000 to $12,500. These cover:

• - Loan origination fees
• - Title insurance and title search
• - Appraisal fee ($400-$600)
• - Home inspection ($300-$600)
• - Escrow deposits (taxes and insurance)
• - Recording fees

Some of these can be negotiated with the seller. In some markets, sellers contribute a portion of the buyer's closing costs as part of the deal.

Earnest Money Deposit

This is your good-faith deposit, typically 1% to 2% of the purchase price. It shows the seller you are serious. The good news: it is applied to your down payment or closing costs at the end. It is not an extra fee. It is just money you need to have available early in the process.

Other Costs to Budget For

• - Home inspection: $300-$600, plus optional specialized inspections (radon, sewer scope, termite) that can add $150-$400 each.
• - Homeowner's insurance: First year is typically paid at closing. Budget $1,200-$2,500 annually for Central Ohio.
• - Moving costs: Local moves typically run $500-$2,000. Long-distance is obviously more.
• - Immediate repairs or upgrades: Even new homes often need blinds, minor fixes, or personalization.

The Real Number

For a typical Central Ohio home in the $200,000 to $350,000 range, here is what I tell my buyers to have ready:

That is a range, not an exact number. Your actual cost depends on your loan type, the home price, and what we negotiate. But it gives you a realistic starting point for your savings plan.

The Bottom Line

You do not need to have everything saved before you start the conversation. I connect you with lenders who can run the numbers for your specific situation and help you understand exactly what you need. The earlier we have that conversation, the better positioned you will be when the right home hits the market.