Call or Text Kelly Vandever | 770.597.1108 | REALTORĀ® | License # 391485
Planning Ahead to Buy Your First House
Apr 14, 2026
How much money do you need to buy a house? I find that many first time home buyers are aware that they need a down payment to buy a house. But they aren't familiar with the other expenses of buying a house.
Here's a list that you'll need to plan for when buying a house and about how much it will cost in the state of Georgia:
1. Down Payment
The amount you need as a down payment can vary. There are first time homebuyer programs that allow you to put down as little at 3.5% or 5% of the sales price of the home.
For qualified veterans, the VA has a 0% down program.
Talk to your favorite real estate agent to get a list of their most trusted lenders who can help you find what program(s) you qualify for.
2. Earnest Money
Earnest money* is an amount that you provide when you go under contract when you get an offer accepted to purchase a property. That money will be applied to the down payment, but I like to let clients know that they will need to be able to provide that money at the point they find a home they're willing to buy.
Typically, the earnest money amount is between 1-2% of the sales price.
3. Home Inspection(s)
When purchasing a home, it's highly advised that you as the person purchasing the home get a home inspection done. You typically have to pay for that at the time of the inspection. Budget between $400-600 for a home inspection.
If there are additional inspections you want to have done based on the results of the home inspection or personal preferences - such as a radon inspection, a septic inspection, an HVAC inspection, etc. Any additional inspection must also be paid at the time of the inspection and can range from $75-$200.
Good new though - certain inspections such as a roofing inspection or a foundation inspection are often free of charge.
4. Closing Cost
What a lot of first-time homebuyers don't realize is that in addition to the down payment, they may also have to pay another 2 - 5 % in closing costs.
Closing costs include lender fees, attorney fees, pre-paying for homeowners insurance, pre-paying for taxes, state and county fees, HOA initiation fees, and more. Plus, if the seller hasn't agreed to pay your buyer brokerages fees, you will have to come out of pocket for that expense as well.
One More Thing... Gift Funds as a Source of Money
What you may not have considered as you're looking toward buying your first home is "gift funds." This is money that comes from parents or grandparents who decide to give you a literal gift of money to help you with buying a house.
This doesn't generally get talked about beforehand, but you would be shocked at how many first-time homebuyers receive money from a family member to be able to buy their first home. I guess we all think as adults we just have to figure it out for ourselves.
You could let it be a pleasant surprise... or if you think this might be an option with your parents or grandparents, maybe have a conversation with them about the benefits of home ownership and see if they're willing to help you out.
The Benefits of Homeownership
Between all these costs, it's important to know how much money you need to have saved to buy your first house.
It may seem like a lot. But the benefits from the family stability and equity you can grow if you buy a house now and keep it over time, makes the benefits outweigh the costs.
So, get started today! And if you need some help, feel free to give me, Kelly Vandever, a call at 770-597-1108 and let's brainstorm some ways that you can get started!
*While earnest money is not required in the state of Georgia, earnest money is the only dispensation that the home seller can collect if you are in breach of contract and do not purchase the home. Any home seller would be nuts to sign a purchase and sale agreement that didn't include the home buyer providing earnest money.
