What you actually need saved to buy your first home
“I don't know if I have enough money to buy yet.”
By Jose Eduardo Hernandez · REALTOR®, KW Commercial · Nov 2026
Most first-time buyers focus on the down payment. There are three buckets to plan for.
- Down payment. This depends on the loan. Some programs allow very low down payments; conventional loans often start around 3% to 5%. Putting down less than 20% usually means mortgage insurance.
- Closing costs. Lender fees, title, taxes and prepaid items. These often run a few percent of the price. Sometimes the seller can contribute.
- Reserves. Money left over after closing for repairs, moving and emergencies. Lenders may want to see some, and you'll be glad you have it.
Ask a lender about first-time buyer and down payment assistance programs in Illinois. Many buyers qualify for help they didn't know existed.
First step: get pre-approved. It turns a guess into a real number for your price range, your payment and your cash to close.
Ready to start looking?
Tell me what you're looking for. I'll walk you through the numbers before you fall in love with a house.
General information for Illinois owners, buyers and sellers, not legal, tax or lending advice. Every property and lease is different; talk with an attorney, accountant or lender about your situation.