Sarah explained that buying a house is like an iceberg—there is the price you see, and the costs beneath the surface.
Leo and Mia looked at their $50,000. If they bought the $400,000 house: $20,000 (5%) Closing Costs: $12,000 (3%) Total Spent: $32,000
Are you a ? (This often unlocks lower down payment options). how much money do you need to buy a house
They closed on a modest cottage two months later. It wasn't the mansion they'd imagined, but it was theirs—and they still had enough money left over to fix the water heater when it gave out three weeks after move-in.
That left them with for emergencies and furniture. They realized they didn't need a "perfect" 20% down payment to start their lives; they just needed enough to be "house-safe." Sarah explained that buying a house is like
Their real estate agent, Sarah, had broken it down for them the day before. It wasn’t just about the price tag on the house; it was about the "hidden" layers of cash required to actually get the keys. The Three Layers of Cash
Do you have a specific you're trying to stay under? (This often unlocks lower down payment options)
This was the surprise. Sarah told them to set aside another 2% to 5% of the home purchase price. For a $400,000 home, that meant an extra $8,000 to $20,000 for taxes, lender fees, and title insurance.