All I need is my down payment to buy a house… right?

If you are diligently saving to buy a home, good for you! But don't neglect to also save for other costs besides your down payment.


  • Inspection – not required, but most buyers protect their largest investment with an inspection, budget about $400-$600 depending on size on whether or not you have a radon test
  • Appraisal – your lender requires an appraisal to verify it is worth at least what you are paying for it
  • Insurance – you are required to purchase the first year of home owner's insurance when you purchase the home
  • Closing costs – usually 2-5% of your purchase price, includes title and closing services, government recording fees, lender fees
  • Prepaids – pro-rating and pre-paying mortgage interest, taxes and insurance from date of closing
  • Moving costs – whether you hire movers or you move yourself, there are also some costs associated with moving and getting settled in your new home

The good news is if you don't have quite enough to pay all your closing costs you can negotiate with your seller to contribute up to 3% of your purchase towards your closing costs. If you are using FHA financing that amount could be even higher but rarely goes over about 4%.

Sharlene Hensrud, RE/MAX Results -  Minneapolis-St. Paul Buyer's Agent

The HomesMSP Team - SharleneJohnAngela Twin Cities Realtors


Written By

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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Sharon and John Hensrud

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The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.