Determine Your Down Payment


Determine How Much You Can Afford to Spend Upfront on a New Home Purchase

Estimate Your Costs to Close

In addition to your down payment, there are many costs associated with finalizing your loan and home purchase. Closing costs depend on a lot of things – the price of the home, your down payment amount, and the kind of loan you choose.

Determine Your Down Payment

Subtract your closing costs estimate from your available funds for closing to determine your maximum down payment.

Plan on Needing Money to Cover Initial Home Expenses

New homeowners often find things that need fixing or discover that they need additional furniture for their new home. Moving expenses and utility set-up fees are also common. When calculating how much you can afford for a down payment, make sure to set aside some money to cover these expenses.


Down Payment Amount Affects the Your Type of Loan and Interest Rate

Low- Or No-Down Payment Options May Be Available

Give Yourself a Cushion

At this point in the home buying process, the numbers you are working with are estimates. It’s a good idea to give yourself a cushion in your estimates, so you’re not left scrambling for money. You can also explore additional ways to save for your down payment and additional costs.