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Saving for a down payment on a home is a huge accomplishment. It takes time, discipline, and determination to set aside enough money to make your dream of homeownership real. However, what many buyers don’t realize is that the down payment is only the beginning.
To make sure your new home feels like a blessing instead of a financial burden, you’ll need extra savings in place even after closing. Here’s what to plan for and why.
1. Closing costs. In addition to your down payment, you’ll need to cover closing costs. These typically range from 2% to 5% of the purchase price. On a $350,000 home, that’s $7,000 to $17,500. These fees include lender charges, title insurance, and property taxes. If you don’t plan ahead, they can come as an unwelcome surprise at the closing table.
2. Emergency fund. Life happens; cars break down, jobs change, and roofs leak. That’s why financial experts recommend keeping three to six months of living expenses in an emergency fund, even after your home purchase. Without having enough savings in place, a small setback can turn into a big problem.
According to Bankrate’s 2026 Emergency Savings Report, only 41% of Americans say they could cover a $1,000 unexpected expense from savings, while 59% say they cannot.
3. Move-in and maintenance costs. Moving isn’t free. Whether you hire movers or rent a truck, there will be costs. Once you’re in, expect additional expenses like new locks, blinds, or fresh paint.
Long-term, homeowners also need to budget for upkeep. A common rule of thumb is to set aside 1% to 2% of your home’s value yearly for maintenance and repairs, and in older homes, that number can rise closer to 3% or 4%. On a $350,000 home, that’s roughly $3,500 to $7,000 annually.
Even if you don’t spend it all right away, you’ll be glad it’s there when the water heater breaks or the roof needs attention.
4. Comfort zone savings. Not every buyer needs the exact same cushion. If your job is stable and your income is predictable, you may feel comfortable with a smaller emergency fund. But if your work is commission-based, seasonal, or less secure, keeping a larger reserve can make all the difference.
Think of it this way: the numbers matter, but so does your peace of mind. Some buyers can sleep soundly with just a few months of expenses saved, while others won’t rest easy unless they have a year’s worth tucked away. The “right” amount is the level that lets you
How much should you keep in savings after the down payment? Target saving 2% to 5% of the purchase price for closing costs, three to six months of living expenses for emergencies, and about 1% to 2% of your home’s value each year for maintenance. On top of that, plan for move-in costs like furniture, paint, or small upgrades.
Buying a home is exciting, but it shouldn’t leave you financially drained. With the right plan, you’ll be able to cover your costs, protect yourself from the unexpected, and enjoy your new home with confidence.
If you’re preparing to buy, I’d be happy to walk you through the numbers and help you make a smart plan. Call, text, or email me anytime. I’m here to help.
