Saving for Your Down Payment and Closing Costs

1) Know your savings target

Start by estimating how much cash you’ll need for both the down payment and closing costs.

• Down payment: Usually 3–20% depending on your loan type and credit.
• Closing costs: Typically 2–4% of the purchase price.
• Move-in cushion: Budget for immediate setup costs like utilities, cleaning, or furniture.

2) Create a savings timeline

Break your total goal into smaller, consistent contributions over time. Even $200 a month adds up quickly.

• Set up automatic transfers to a high-yield savings account.
• Track progress monthly to stay motivated.
• Redirect windfalls - tax refunds, bonuses, or side income - straight into savings.

3) Look into down payment assistance programs

Many cities, states, and lenders offer grants or loans to help first-time buyers with upfront costs.

4) Save smarter with small adjustments

You don’t need major lifestyle changes to grow your savings - small tweaks can make a big difference.

• Cut one recurring expense and redirect the savings (like unused subscriptions).
• Use cashback or reward apps to add a few extra dollars each month.
• Sell or donate unused items and deposit the proceeds.