This was their biggest hurdle. To avoid private mortgage insurance (PMI), they wanted 20%, which on a $400,000 home was $80,000. Sarah pointed out they could put down as little as 3.5% ($14,000) with an FHA loan, but their monthly payments would be higher.
Sarah insisted they keep $10,000 in the bank after the purchase. "Houses break the moment you move in," she warned. "You’ll need a lawnmower, curtains, and a plumber for that leak you didn't see during the walkthrough." The Decision how much money do you need to buy a house
Are you a ? (This often unlocks lower down payment options). This was their biggest hurdle
Sarah explained that buying a house is like an iceberg—there is the price you see, and the costs beneath the surface. Sarah insisted they keep $10,000 in the bank
"We have $50,000," Leo said, tapping a calculator. "That’s a huge amount of money. Why does it feel like we’re still short?"
They closed on a modest cottage two months later. It wasn't the mansion they'd imagined, but it was theirs—and they still had enough money left over to fix the water heater when it gave out three weeks after move-in.