The down payment is just the cover charge. Here is the rest of the bill, in order of arrival.
First-time buyers budget for the down payment and stop there. The real day-one bill has a second line: closing costs of 2–5% of the purchase price — lender fees, title insurance, transfer taxes, plus a year of home insurance and a few months of property tax paid upfront. On a $400,000 home, that's $8,000–$20,000 on top of the down payment. Itemize yours with the closing cost calculator before you write any offers.
Immediate fixes: even solid inspections surface $1,000–$5,000 of first-year work — a water heater on borrowed time, grading that sends rain toward the foundation. Stuff: a house eats furniture, a lawn mower, ladders, hoses. Utilities: heating and cooling 1,800 sq ft costs more than a 900 sq ft apartment. Maintenance forever after: plan on ~1% of the home's value per year, every year — that's the difference between homeowners with savings and homeowners with credit card debt.
And before any of it: know what actually lands in your bank account each month — the paycheck calculator keeps the budget honest.
Your monthly payment is four bills wearing one trench coat: principal & interest, property tax, home insurance, and possibly HOA dues. Tax and insurance vary wildly by county and state — the same $400,000 house can differ by $600+/month between New Jersey and Tennessee. Run the full stack in the mortgage calculator, then sanity-check the total against the 28/36 rule.
The one-sentence version: budget the closing cash, expect 1% a year in upkeep, and buy the house whose full monthly stack — not just the mortgage — fits your take-home pay.
Put the pieces together for a $400,000 home with 10% down: $40,000 down payment + about $12,000 in closing costs (3%) + $450 inspection + $1,500 movers + a $3,000 first-repairs buffer ≈ $57,000 before your first mortgage payment. Go FHA with 3.5% down ($14,000) and the same everything-else lands around $31,000. Whatever your numbers, the pattern holds: real cash needed ≈ down payment + roughly 4–5% of the price in one-time costs. Build your own version with the closing cost calculator.
What is earnest money?
A deposit — commonly 1–3% of the price — submitted with your offer to show you're serious. It sits in escrow and is credited toward your down payment at closing. You get it back only through your contract contingencies (inspection, financing, appraisal), so track those deadlines carefully.
Are there programs that help with the down payment?
Every state runs a housing finance agency with first-time-buyer programs — grants, forgivable second loans, below-market rates. Income and price caps apply, but thirty minutes on your state HFA's website can be worth real money. More in our down payment guide.
How much should be left in the bank after closing?
Three to six months of expenses, untouched. The first year of ownership finds everyone — the difference is whether it finds your emergency fund or your credit card.
When does PMI go away?
On conventional loans it can be removed at 20% equity and drops automatically at 78% of the original value — the PMI guide covers the shortcuts, including the appraisal play.
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