How Much Money Should I Save Before Buying a House?
DOWN PAYMENT
You must have a sizeable down payment (20% or greater) to avoid paying private mortgage insurance (PMI), which averages around 1% of the purchase price.
Closing Costs
These fees cover the cost of the closing paperwork for the property. They also include legal fees, title searches, surveys, etc.
Closing costs vary by State.
Homeowners Insurance Premiums
Some loans require mortgage insurance premiums. These may be paid once per month and protect the lender and owner from damage to the property.