If you’ve been putting off buying a home because you think you need tens of thousands of dollars saved, you’re not alone.
One of the biggest misconceptions about homeownership is that you need a 20% down payment. While putting 20% down is certainly an option, it’s far from the only path to buying a home.
In fact, many homebuyers purchase a home with much less.
So, how much money do you actually need?
The answer depends on several factors, including the type of loan you qualify for, the purchase price of the home, and whether you’re eligible for down payment assistance programs.
Many loan programs allow qualified buyers to purchase a home with a low down payment, and some even offer zero-down financing. There are also programs designed to help first-time homebuyers with down payment and closing costs.
Beyond your down payment, it’s important to budget for a few additional expenses. Closing costs typically include lender fees, title work, appraisal costs, prepaid taxes, and homeowners insurance. While these costs vary, many buyers are surprised to learn there are ways to reduce their out-of-pocket expenses through seller concessions, lender credits, or assistance programs when available.
The biggest mistake many buyers make is assuming they can’t afford to buy without ever talking to a mortgage professional.
We’ve had countless conversations with people who waited years because they thought they needed more savings, only to discover they could have qualified much sooner.
There’s another important piece of the puzzle: your monthly payment.
Sometimes buyers focus so much on saving for a down payment that they forget to ask whether the monthly payment fits comfortably within their budget. A mortgage should support your financial goals, not create unnecessary stress. Understanding your payment options early helps you shop with confidence and avoid surprises later.
The good news is you don’t have to figure this out on your own.
A mortgage professional can review your financial picture, explain your loan options, estimate your monthly payment, and help you understand exactly how much cash you’ll need based on your goals.
Every buyer’s situation is different. That’s why personalized advice is so valuable.
If you’ve been wondering whether you’ve saved enough to buy a home, don’t let assumptions hold you back. The numbers may be more achievable than you think.
The first step isn’t saving another year. It’s having a conversation.
At Mortgage 1, we’re here to answer your questions, explain your options, and help you build a plan that works for you. Whether you’re ready to buy now or just starting to think about homeownership, we’d love to help you understand what’s possible.