Start with the monthly number, end with a price range
Emergency fund before buying
The short version
Plan to keep cash after closing for repairs, job changes and surprise bills, separate from your down payment and closing costs. A common approach is to count several months of total housing and living costs. Lenders may also require reserves, but your own cushion should reflect your job stability and the age of the home.
Last reviewed against the primary sources listed below.
Count these months
- Housing payment.
- Utilities and insurance.
- Groceries, transport and debts.
You asked, we answered
Should I drain savings for a bigger down payment?
Keep a cushion after closing for repairs and surprises.
Do lenders require reserves?
Some loans do; the amount depends on the loan.