How Much Should I Have Saved Before Buying A House May 2026

Set aside 1% to 2% of the home's value annually for repairs (e.g., $4,000–$8,000 for a $400k home).

Your down payment is the largest upfront cost and directly impacts your monthly mortgage payment. how much should i have saved before buying a house

The "gold standard" that allows you to avoid Private Mortgage Insurance (PMI) , which typically costs 0.5% to 1% of your loan amount annually. 2. Closing Costs (2% to 5%) Set aside 1% to 2% of the home's

Aim for 3 to 6 months of total living expenses , including your new mortgage payment. These costs vary significantly by location; for instance,

Minimum for first-time buyer conventional loans (3%) or FHA loans (3.5%).

These costs vary significantly by location; for instance, averages in D.C. are much higher than in states like South Dakota. 3. Cash Reserves & Emergencies (3 to 6 Months)

Do you have a specific or monthly budget in mind that we could use to run more detailed numbers?