“How much do I need to buy a house?” is usually the first question people ask — and the answer is almost always more than they think. If you’re wondering how much money to buy home, the down payment is just one piece of the total cash you need. Between earnest money, closing costs, inspections, moving, and a safety cushion, the real number can be 2–3x what the down payment alone suggests. This guide lays out every dollar, so you can save with confidence.
Want to see your real cash-to-close on a specific home price? Run the numbers in our free home affordability calculator — it breaks down every cost so there are no surprises.
The short answer
Plan to have between 6% and 25% of the home’s purchase price in total cash before you start shopping. That’s:
- Down payment: 3–20% (depending on loan type)
- Closing costs: 2–5%
- Inspections, appraisal, moving: 1–2%
- Emergency reserves: 1–3 months of housing payments recommended
On a $400,000 home, that’s anywhere from ~$24,000 on the low end (FHA 3.5% down, tight budget) to ~$100,000+ on the high end (20% down, healthy reserves). Let’s break down every piece.
1. Earnest money deposit
Earnest money is the first check you write — usually within a few days of your offer being accepted. It shows the seller you’re serious and gets held in escrow until closing.
- Typical amount: 1–3% of purchase price
- When due: 1–3 days after offer accepted
- Applied to: Your down payment and closing costs at closing
Important: earnest money isn’t an extra cost. It’s part of the total cash you’d need to bring anyway — just paid earlier in the process. If your deal falls through for a protected reason (financing, inspection, appraisal), you get it back.
2. Down payment
This is the biggest cash component for most buyers. The amount depends entirely on your loan type:
| Loan type | Down payment | On $400,000 home |
|---|---|---|
| VA loan | 0% | $0 |
| USDA loan | 0% | $0 |
| Conventional 97 | 3% | $12,000 |
| FHA loan | 3.5% | $14,000 |
| Conventional (standard) | 5% | $20,000 |
| Conventional (no PMI) | 20% | $80,000 |
Learn more in our guide on how much down payment you need.
3. The “famous” closing costs
Closing costs are the bundle of fees you pay at closing: loan origination, appraisal, title insurance, escrow, recording fees, prepaid taxes and insurance, and more.
- Typical range: 2–5% of purchase price
- On $400,000: $8,000 to $20,000
Closing costs vary significantly by state, lender, and loan type. They can sometimes be partially covered by seller concessions or lender credits — worth negotiating.
4. Home inspection and appraisal
These are typically paid out of pocket before closing, not at the closing table:
- Home inspection: $300–$600 (optional but strongly recommended)
- Specialized inspections: $100–$400 each (termite, radon, sewer scope, roof)
- Appraisal: $400–$700 (usually required by your lender)
Budget at least $1,000–$1,500 for inspections and appraisal on a typical home.
5. Moving costs
It’s easy to underestimate moving. Here’s what people actually spend:
- DIY (truck rental + friends): $300–$1,000
- Professional movers (local): $1,000–$3,000
- Professional movers (long-distance): $3,000–$10,000+
- Packing supplies, misc: $200–$500
Plan for $1,000–$3,000 for a typical local move, more if you’re moving across states.
6. Furniture, appliances, and immediate repairs
Most buyers don’t budget for this, and most regret it. A few realities:
- Furniture and decor — $2,000–$20,000 depending on the home size and what you already own
- Appliances — $500–$5,000 if they’re not included or need replacing
- Immediate repairs — $1,000–$10,000 for surprise fixes in the first 6 months
- Window treatments — $500–$3,000 (curtains, blinds, shades)
- Paint, carpet, small renovations — $1,000–$10,000
Realistic budget: $3,000 to $15,000 for a smooth transition into the new home.
7. Emergency reserves
This is the one most buyers skip — and the one that matters most. After you close, you should still have 3–6 months of housing payments in savings. Not counting your emergency fund, not counting retirement savings. Just housing reserves, so a broken water heater or a job blip doesn’t become a crisis.
On a home with a $2,500 monthly payment, that’s $7,500 to $15,000 you should still have after closing.
Many lenders actually require cash reserves for conventional loans — especially for jumbo loans. So it’s not just smart, it’s sometimes required.
Real cash-to-close on a $400,000 home
Let’s put it all together. Here are three realistic scenarios:
Scenario A: First-time buyer, FHA, tight budget
| Down payment (3.5%) | $14,000 |
| Closing costs (3%) | $12,000 |
| Inspection + appraisal | $1,200 |
| Moving | $1,500 |
| Initial setup / repairs | $3,000 |
| Emergency reserves | $7,500 |
| Total cash needed | ~$39,200 |
Scenario B: 10% down, moderate buyer
| Down payment (10%) | $40,000 |
| Closing costs (3%) | $12,000 |
| Inspection + appraisal | $1,200 |
| Moving + setup | $5,000 |
| Emergency reserves | $12,000 |
| Total cash needed | ~$70,200 |
Scenario C: Conventional 20% down, strong buyer
| Down payment (20%) | $80,000 |
| Closing costs (3%) | $12,000 |
| Inspection + appraisal | $1,200 |
| Moving + setup | $8,000 |
| Emergency reserves | $15,000 |
| Total cash needed | ~$116,200 |
The range of “cash needed to buy a $400,000 home” spans from about $40k to $116k — depending on your loan type, down payment choice, and how prepared you want to be. Most first-time buyers fall in the $45k–$70k range.
Ways to reduce the total cash you need
1. Use a low-down-payment loan
FHA, VA, USDA, and Conventional 97 all let you put down far less than 20%. Combined with down payment assistance, you can often buy with under $15,000 total.
2. Negotiate seller concessions
Sellers will sometimes cover 1–3% of your closing costs as a “concession.” On a $400,000 home, that’s $4,000–$12,000 you don’t pay. Especially common in buyer’s markets.
3. Ask for lender credits
Your lender can cover part of your closing costs in exchange for a slightly higher interest rate. Smart if you’re cash-strapped or plan to refinance.
4. Buy with Beycome and get up to 2% back
A typical 3% buyer agent commission is built into every home’s price. When you buy with the Beycome buyer program, we rebate up to 2% of the purchase price back to you at closing. On a $400,000 home, that’s $8,000 — often enough to cover your entire inspection, moving, and reserve budget.
5. Time your purchase around bonuses and tax refunds
Strategic timing can add thousands to your buying power without saving more each month.
Bottom line: plan for the full picture, not just the down payment
The biggest mistake first-time buyers make is saving only for the down payment — then being shocked by closing costs, moving, and the furniture budget. Plan for the full cash-to-close picture, give yourself margin for surprises, and always keep reserves after closing.
Your future self, living comfortably in a home with money in the bank, will thank you.
See your real total cash to close. Run your home price through the Beycome affordability calculator — it includes every cost, not just the mortgage.
Discover beycome title today!