One of the most frequent questions from home buyers is asking how much cash they need to buy a home. Answering this question can be complex, as buyers need to determine how much they can afford for a monthly payment, based on their finances, as well as how much savings they need for their down payment and closing costs. Down Payment and Closing Costs When purchasing a home, buyers need to factor in the closing costs and the costs to set up the escrows and other things that are required to buy a home. Typically the largest up-front cost is the down payment, which varies depending on the mortgage used to purchase the home. Some mortgages like FHA loans require a smaller down payment, which can often be as low as 3.5% of the price of the home. For example, when…

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