How much savings should I keep after closing?

Q: How much savings should I keep after closing?

Keep a cushion that fits your household, separate from planned moving or repair costs. Your lender’s reserve requirement is a different calculation.

Start with the money you want to keep

Before choosing a down payment, earmark money for the move, immediate work and emergencies. CFPB describes three to six months of expenses as a usual emergency cushion in its homebuying planning guidance—not a mortgage approval rule or a guarantee that the amount will be enough. Use your own essential expenses and income reliability to choose a comfortable target. CFPB — Planning your homebuying budget ↗

How are lender reserves different?

Fannie Mae measures qualifying reserves in months of the mortgage’s qualifying housing payment, after subtracting funds needed to close. Requirements depend on the loan and property; automated underwriting can require more. Other programs and lenders differ. Some eligible assets may count without being ordinary savings cash. Ask for the amount, eligible accounts and documentation required for your actual loan. Fannie Mae — Minimum Reserve Requirements ↗

Separate known expenses from emergencies

An emergency fund covers unexpected bills or an interruption in income. The amount depends on your circumstances. A planned appliance purchase or known repair belongs in its own budget so it does not quietly consume the money you meant to keep for surprises. CFPB — Building an emergency fund ↗

Compare two down-payment plans, not just two rates

Ask for written scenarios using the same home, loan type and timing. Review monthly payment, mortgage insurance, closing charges and cash to close. The Loan Estimate accounts for deposits and credits: reconcile these before subtracting cash needs from savings so you do not count money twice. CFPB — Loan Estimate explainer ↗

What should a Seattle-area buyer bring to the conversation?

Bring your available-cash figure, preferred monthly payment, estimated moving costs and any known property expenses. For a King County condo, list association dues and a disclosed assessment separately from closing charges. Then ask: “How much stays available after everything we have planned, and what would one unexpected bill do to that balance?” These are planning questions, not a prediction of repair costs.

Use the cash-to-close planner, then Ask Enrique

Enter your own figures in the homebuyer cash planner and check its savings-remaining result. Next subtract moving and immediate purchases on your worksheet; the planner does not choose an emergency-fund target for you. Bring both scenarios to Ask Enrique before committing to a larger down payment. Start with a comfortable payment and enough room for the rest of your life.

PUT IT INTO PERSPECTIVE

An example, not an offer

Hypothetical Seattle-area budget, not a quote or client transaction: start with $80,000 of cash before any purchase deposits. Suppose all purchase funds together—including down payment and closing expenses—total $50,000, and you separately plan $8,000 for moving and immediate work. That leaves $22,000 ($80,000 − $50,000 − $8,000). If essential household spending, including the new housing payment, is $5,500 a month, this is four months of expenses. An additional $10,000 down would leave $12,000, about 2.2 months, before considering any resulting payment change. Neither balance proves loan eligibility or that your cushion is sufficient; compare the revised payment and your own risks.

Plan cash to close and savings remaining →

Check the original guidance

Requirements and availability can change. Confirm the program and lender terms for your application.