Most first-time buyers need much more cash than the down payment alone. On a $300,000 home with 5% down, plan on roughly $30,000–$35,000 once you add closing costs, an inspection, moving and a few months of savings.
That’s not as far off as it sounds: the median first-time buyer put down 10% in NAR’s 2025 Profile of Home Buyers and Sellers, and 59% paid it from personal savings.
Cash-to-close savings calculator
See how much cash you need and how long it will take to save it.
Includes a $350 home inspection and reserves based on an estimated payment at 7.4% plus taxes and insurance.
Estimates for education only. Rates and costs vary; confirm with a licensed lender.
What your cash pays for
| Cost | Typical amount |
|---|---|
| Down payment | 3–20% of the price |
| Closing costs | 2–5% of the loan |
| Earnest money | 1–3% of the price (counts toward your down payment) |
| Home inspection | About $300–$425 |
| Appraisal | Usually $400–$700 |
| Reserves | 2–6 months of payments, often required by lenders |
| Moving and setup | $1,000–$5,000 |
Module 1’s savings timeline calculator shows when you’ll reach your number (and Module 1 is free to read). Module 6 goes through closing costs line by line, with a closing cost calculator and a side-by-side Loan Estimate comparison.
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Ways to need less cash
- Ask the seller for credits toward your closing costs.
- Check down payment assistance from your state housing finance agency.
- Use gift funds: 22% of first-time buyers got help from family or friends.
- Compare lenders: fees vary more than most people expect.
Educational content only, not financial advice. Calculators start at the Freddie Mac weekly average (7.4% as of October 15, 2026); worked examples use mid-October 2026 rates. Confirm current figures with a licensed lender.
Sources: NAR 2025 Profile of Home Buyers and Sellers, Rocket Mortgage inspection costs.
Down payments, the real monthly cost, inspections and closing day, explained simply. You’ll also get occasional emails about buying a home and the course. No spam, unsubscribe anytime.