Cash needed to buy a home

The amount of money required to purchase a home depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money, down payment and mortgage closing costs. When you make an offer to buy a home and your offer is accepted, your earnest money is deposited into a trust account. Your earnest money will be applied to your down payment of closing costs.

To figure out your down payment and closing costs it is important to meet with a lender. They will help you determine the amount of your down payment based on your qualifications and credit score. From that point you and the lender will decide on the appropriate loan type and they can estimate your closing costs.