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How Much Cash do I Need to Buy a Home?

Check out our YouTube video we made last week about how much cash you need to buy a home!

A question we frequently get asked by clients is how much cash do I need to buy a home. We’ll go over how much you need depending on what loan you choose. If you have a VA loan go check out our other blog post here: Another loan type is a conventional. Most people think you have to put 20% down but great news, there are now programs that can get you in a home for as little as 3%. These vary so contact us and we can put you in touch with our lender. This is great because a lot of people try to save up a 20% down payment but with the way the market is moving by the time you’ve saved up $100,000 for a $500,000 house, it’s now worth $800,000 and you lose out on it. We recommend getting in a house as quickly as possible so that you can gain equity with the market rising. There’s also an FHA loan these range from 3.5% to whatever you want really (you can put as much down as you want on either loan).

Another expense is getting a home inspection. These are highly encouraged but not required; if you choose not to get an inspection you actually have to sign a paper because it’s that important. They are fantastic because they basically give you an owner’s manual for your home. Inspections cost anywhere from $300 for a basic inspection to $800 for a more specialized (meth testing, radon, etc.).

An appraisal is also something that needs to be done if you’re getting a loan so the bank knows how much to loan out. These cost about $500 and up depending on square footage and those types of things. We also want to emphasize that we are not lenders so we would refer you to one of our local lenders to get specifics on your loan this is just to give you an idea.

Some cash that is not required but is used if available and needed is cash to make your offer stronger. Like, if you chose to add an appraisal gap to your offer you would need cash for that. This blog explains what an appraisal gap is: These types of things are not required but it is nice to have a little extra in order to strengthen your offer.

If you have any questions call or text us at 801-821-9400 or email We’ll also leave a contact form below!

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