When you calculate how much you will need to purchase
a home in town, you will add up the down payment and closing costs. It
is also a good idea to leave yourself with some financial cushion to cover the
incidental expenses associated with moving.
First, you will have to pay the moving company unless you can find
friends with strong backs who will help you. Then many buyers plan to do some
work, such as painting, replacing carpet, or refinishing floors. If you are
moving into a larger space, you may find yourself making some major furniture
purchases within a few months of closing. A financial cushion is important
enough that some lenders require buyers to have an amount in the bank equivalent
to two or three months mortgage payments. This is especially true for buyers who
are putting less than ten percent down. Your Realtor can give you guidance. A
lot depends on your overall financial situation. If your mortgage is a
relatively low percentage of your monthly income, you will be able to rebuild a
comfortable amount of savings in a few months.