One of the biggest misconceptions about buying a home is that you need a large amount of money saved up before you can get started. In reality, the amount you need depends on several factors including your loan type, purchase price, and financial goals. Here’s a clear breakdown of the main costs buyers should plan for when purchasing a home in Mansfield, Arlington, or the surrounding DFW area.
1. Down Payment
Your down payment is the portion of the home price you pay upfront.
Many buyers assume they need 20% down, but that’s rarely the case.
In today’s market, common options include:
- 3% – 5% down for conventional loans
- 3.5% down for FHA loans
- 0% down options for VA and some USDA loans (if eligible)
Example:
On a $400,000 home:
- 3% down = $12,000
- 5% down = $20,000
The right option depends on your situation, and a lender can help you explore what you qualify for.
2. Closing Costs
Closing costs are separate from your down payment and typically range from:
👉 2% – 5% of the purchase price
These costs can cover:
- Loan fees
- Title and escrow services
- Appraisal and inspections
- Prepaid taxes and insurance
Example:
On a $400,000 home:
- Closing costs may range from $8,000 – $20,000
In some cases, buyers can negotiate for the seller to help cover a portion of these costs.
3. Earnest Money & Option Money
These are upfront costs you’ll pay when you go under contract.
- Earnest Money: Typically around 1% of the purchase price
- Option Money: Usually $100 – $500+ depending on the home
The good news:
👉 These amounts are generally credited back to you at closing if you move forward with the purchase. You can read more about option and earnest money on our recent blog post
4. Inspections & Additional Costs
You’ll also want to budget for:
- Home inspection (typically a few hundred dollars)
- Possible additional inspections (foundation, roof, etc.)
These costs help you fully evaluate the home before moving forward.
5. Moving & Setup Costs
Don’t forget the “after closing” expenses:
- Moving services or supplies
- Utility setup
- Initial home maintenance or small updates
These can vary, but it’s helpful to have a cushion set aside.
Need moving services? You can check out our preferred moving company HERE
So… How Much Do You Actually Need?
While every situation is different, many buyers in Mansfield and North Texas can expect to need roughly:
👉 5% – 10% of the purchase price in total upfront costs
This includes:
- Down payment
- Closing costs
- Initial expenses
The Bottom Line
Buying a home may feel out of reach, but once you break down the numbers, it often becomes much more manageable. Every buyer’s situation is different, and having a clear financial plan is one of the most important parts of the process. At Peak Point Real Estate, we help buyers in Mansfield and the surrounding DFW area understand their options, connect with trusted lenders, and move forward with confidence.
If you're thinking about buying, we’re here to help you take the next step!
