Your savings and your down payment are two of the biggest factors in determining what home you can afford – and how comfortable you’ll be financially once you own it.
How much do you really need?
While 20% down avoids private mortgage insurance on a conventional loan, many loan programs allow far less – some as low as 3-5% down, and certain government-backed loans require none at all for eligible buyers.
Don’t forget closing costs
Beyond the down payment, budget an additional 2-5% of the purchase price for closing costs, unless you’ve negotiated seller concessions to help cover them.
Keep a reserve after closing
Draining every dollar of savings for the down payment can leave you exposed if an unexpected repair or expense comes up right after move-in. Most lenders like to see a cushion of reserves remaining after closing.
Start saving strategically
A dedicated high-yield savings account, automatic transfers, and a clear target amount all make reaching your down payment goal more achievable.
Want help figuring out what you’ll need to save? Call Dockside Realty at 850.225.9785 or email christine@docksiderealtyinc.com.