A "good faith" deposit submitted with your offer. It is later applied to your down payment but must be available immediately.
Buying a home in 2026 requires a multi-layered savings strategy that extends far beyond the down payment. Financial experts generally recommend having saved to cover all upfront costs and maintain a safety net. Phase 1: The Upfront "Cash-to-Close" how much should i have saved to buy a house
Many first-time buyers use conventional loans with 3% down or FHA loans at 3.5% . A "good faith" deposit submitted with your offer
Often the biggest "cash shock," these fees cover loan origination, appraisals, title insurance, and government taxes. On a $400,000 home, expect $8,000 to $24,000 . Financial experts generally recommend having saved to cover
These are the funds you must have liquid to physically complete the transaction.
Traditionally recommended to avoid Private Mortgage Insurance (PMI) and secure better interest rates.
VA loans (for veterans) and USDA loans (for eligible rural areas) allow for 0% down .