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How Much Money Do You Need To Buy a House In 2024?

Assuming that you want to purchase a $300,000 house and have mortgage payments around $1,500 to $1,800 a month, you may be able to buy a house with as little as $18,000.  If you have $27,000 you are even more likely to be able to purchase a $300,000 house.  

What Expenses Should I Save To Buy A House?

Here’s a breakdown of how that money will be used:

  • $9,000 will go towards the down payment on your mortgage
  • $7,700 will go towards your closing costs 
  • $800 for the inspections
  • $500 for the appraisal 

Add these together and you’re at $18,000

In addition to the core expenses, here are some other considerations:

  • $3,000 for moving costs
  • 1-2% of the purchase price or $3000 - $6000 in reserve for repairs and upgrades.
  • Most properties are selling as-is, and you’ll likely want a few new appliances. 

Add these together and you’re at $9000.

That puts us at a working budget of $27,000 – or a need to save up $75 per day for one year to purchase a house. 

How To Save Enough Money To Buy A House

If you are starting from scratch, you’ll need to save between $50 and $75 per day for one year.  That’s somewhere between $18,000 and $27,000.  Our estimate will allow you to purchase a $300,000 house and have mortgage payments somewhere in the range of $1500 - $1800 per month depending on your interest rate. 

via GIPHY

Can I Reduce These Costs Up Front?

Yes!

  • You can purchase a more affordable property.
  • The seller can contribute towards your closing costs.
  • You can take steps to be eligible for grants and incentives. 

What If $75 A Day Is Too Hard to Save?

Break your goal into a budget you can manage. 

You may need more than one year to save up. For example, if you saved $20 per day, you’d be ready to purchase a house in 3.5 years. 

How Did We Come Up With $300,000 For A Home In Baltimore?

For purposes of calculation, we used a $300,000 house in Baltimore City being purchased with a conventional loan that requires a 3% down payment. The estimates we are providing are to stimulate your thinking. 

What To Do When You're Ready To Purchase A Home In Baltimore

When you are ready, we’re ready. Let’s have a conversation about your vision. 

It’s never too soon to plan to purchase a home.

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Rachel Rabinowitz, GRI

Rachel Rabinowitz GRI is the broker/owner of guerilla / realty. Since 2006 she’s sold a wide variety of properties throughout the Baltimore-Washington Metropolitan region including; single family homes, estate property, condo units, luxury homes, commercial properties, building lots, acres of agriculturally zoned farmland and multi-family apartment buildings. A Graduate of The Park School, The George Washington University, and The Sotheby’s Institute of Art in London, Rachel is a native Baltimorean with a worldly perspective. Member of the National Association of Realtors, The Maryland Association of Realtors, and the Greater Baltimore Board of Realtors where she serves on the Education Committee and the 2018 Equal Opportunity Committee. Dual licensed with Tranzon, a nationwide real estate auction firm.

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