How Much Money Do I Need Upfront to Buy a Home?

This is one of the biggest stress questions buyers ask — especially around Fort Bragg and the surrounding areas.

Many buyers assume they need 20% down.

Good news:In our market, you often don’t — especially with VA or FHA loan options.

Let’s break down exactly what you should expect to pay upfront so you can plan confidently.

The Real Upfront Costs of Buying a Home

When buying in North Carolina, here’s what you’ll typically need:

1. Down Payment

This varies by loan type:

VA Loan

• 0% down for qualified veterans and active duty

• No private mortgage insurance (PMI)

• Extremely popular near Fort Bragg

FHA Loan

• Typically 3.5% down

• Flexible credit guidelines

• Includes mortgage insurance

Conventional Loan

• Can be as low as 3–5% down

• 20% down avoids PMI

• More flexibility in property types

👉 Many buyers are surprised to learn they can buy with far less than 20%.

2. Closing Costs

Typically 2–3% of the purchase price.

These may include:

• Lender fees

• Appraisal

• Title search

• Attorney fees

• Escrow setup

• Recording fees

Example: On a $300,000 home, closing costs could range from $6,000–$9,000.

Sometimes sellers contribute toward closing costs — but that depends on negotiation and market conditions.

3. Due Diligence Fee (North Carolina Specific)

North Carolina is unique.

The due diligence fee is:

• Paid directly to the seller

• Non-refundable

• Shows serious intent

Amount varies based on:

• Price range

• Market competition

• Negotiation strength

This is separate from earnest money.

4. Earnest Money Deposit

This is:

• Held in escrow

• Credited toward your purchase at closing

• Refundable under contract terms

The amount depends on:

• Purchase price

• Market competitiveness

5. Home Inspection Costs

Typical inspection expenses:

• General home inspection

• Termite inspection

• Radon (if applicable)

• Septic inspection (if applicable)

Most buyers should budget $400–$800+, depending on property type.

What Does This Look Like in Real Numbers?

Let’s say you're buying a $275,000 home near Fayetteville or Raeford:

With a VA Loan:

• Down payment: $0

• Closing costs: ~$6,000–$8,000

• Due diligence: varies

• Earnest money: varies

• Inspections: ~$500–$800

You could potentially purchase with significantly less cash than most people assume.

The Biggest Mistake Buyers Make

They focus only on the down payment.

But smart buyers plan for:

• Upfront costs

• Moving expenses

• Emergency savings after closing

• Furniture and repairs

I always recommend not draining your savings just to get the keys.

Homeownership feels better when you’re financially comfortable.

Frequently Asked Questions

1. Do I really need 20% down?

No.

VA: 0% down FHA: 3.5% down Conventional: as low as 3–5% down

20% simply avoids PMI — it is not required.

2. Can the seller pay my closing costs?

Sometimes.

In a balanced market, seller concessions are negotiable. In competitive situations, it may be harder.

Strategy matters.

3. Is the due diligence fee refundable?

No.

That’s why we evaluate the property carefully before making an offer and structure it strategically.

4. How much should I keep in savings after closing?

Ideally:

• 2–3 months of living expenses minimum

• Plus extra if the home is older

Peace of mind is priceless.

5. How fast can I close?

Most lenders take 30–45 days.

My preferred lender can close in as little as 15 days, which can strengthen your offer significantly — especially for military relocations.

6. What if I don’t have much saved?

There are:

• Down payment assistance programs

• Seller concession strategies

• Loan programs requiring minimal upfront cash

The key is planning early.

The Bottom Line

Buying a home doesn’t require 20% down in most cases.

But it does require:

• Clear budgeting

• Smart strategy

• Understanding North Carolina contract structure

• Planning beyond just the purchase price

If you’re thinking about buying in Cumberland, Hoke, Harnett, or Sampson counties, let’s break down your numbers and build a plan that works for your goals — not just the bank’s approval amount.

Ready to make your move? I’ll help you craft a smart, competitive offer that aligns with your goals. Call or text me at 910-916-9315, or visit closewithcassienc.com to start your home search today. Close with Cassie – where service meets strategy.