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People frequently ask Lisa:
“How much money do I need to buy a house?”
They usually expect one number.
Maybe:
- $20,000
- $40,000
- Twenty percent
There is no useful universal number because buying a home involves several different categories of cash, and the financing structure can dramatically change the total.
The best approach is to understand where the money goes.
YOUR DOWN PAYMENT
This is the portion of the purchase price you are contributing rather than financing.
For example, if a buyer purchases a $400,000 home and makes a 5% down payment, the down-payment portion would be $20,000.
But that example does not mean every $400,000 buyer needs exactly $20,000 down.
Loan programs vary.
Eligibility varies.
A lender needs to evaluate the borrower.
EARNEST MONEY
Once you make an offer, the purchase agreement may require an earnest-money deposit.
Earnest money is generally money deposited into the transaction according to the contract to demonstrate the buyer's commitment.
It is not necessarily an extra fee that vanishes.
If the transaction closes, it is typically accounted for as part of the closing figures.
But the amount, timing and circumstances affecting whether it is refundable depend on the contract.
That is why Lisa wants you to understand those terms before signing.
HOME INSPECTION
Lisa strongly believes buyers should understand what they are buying before they become emotionally and financially committed.
A general home inspection is usually a buyer expense.
Depending on the property, you may also choose specialized evaluations for areas such as:
- Pool
- Roof
- HVAC
- Sewer
- Plumbing
- Structural concerns
- Pest conditions
A $500 inspection can feel expensive when you're already writing checks.
It can feel extremely inexpensive compared with discovering a major problem after closing.
APPRAISAL
For many financed transactions, the lender requires an appraisal.
Ask your lender about current pricing and when that charge is due.
CLOSING COSTS
Closing costs can include lender charges, title/escrow expenses, prepaid items, insurance-related amounts and other transaction expenses.
Your lender should provide required loan disclosures and estimates.
The amount can vary substantially from buyer to buyer.
CAN THE SELLER PAY SOME OF MY CLOSING COSTS?
Sometimes.
Seller concessions can be negotiated when permitted by the buyer's financing and accepted by the seller.
Whether that makes sense depends on the market.
If a seller has five competing offers, they may be less motivated to contribute.
If a property has been sitting and the seller is motivated, Lisa may identify an opportunity.
This is negotiation.
MOVE-IN MONEY MATTERS TOO
The purchase does not end when the closing statement balances.
You may immediately need:
- Movers
- Utility deposits
- Window coverings
- Furniture
- Appliances
- Locks
- Minor repairs
- Pool supplies
- HOA access items
Lisa does not want you spending every available dollar just to get through closing.
EMERGENCY RESERVES
Eventually something breaks.
That is not pessimism.
That is homeownership.
In Las Vegas, replacing a major HVAC component during summer can become a very immediate expense.
Keeping reserves matters.
HOW TO FIND YOUR NUMBER
Instead of asking:
“How much money do people need?”
Ask your lender to show you several scenarios.
For example:
- $350,000 purchase
- $400,000 purchase
- $450,000 purchase
Different down-payment structures.
Different estimated monthly payments.
Different cash-to-close estimates.
Now you're making a decision from numbers rather than internet folklore.
