The Money Truth

Every single dollar you'll spend buying a home in DFW. No surprises. No hidden fees. Just the complete financial picture.

Phase 1: Discovery Stage 1.2: Reality Check

What You'll Learn

Everyone talks about down payment and monthly mortgage, but that's only 60% of what you'll actually spend. This is the complete breakdown based on a $380,000 home in DFW.

Exact upfront costs: down payment, closing costs, inspections
Real monthly payment including taxes, insurance, and PMI
Hidden costs that catch new homeowners off guard
Interactive calculator to estimate YOUR total cash needed

Total Cash Needed to Close on a $380K Home

$24,700 - $41,600
Depending on down payment (3.5% vs 10%) and closing cost negotiations
$13,300-$38,000
Down Payment
$7,600-$11,400
Closing Costs
$1,500-$2,500
Inspections & Fees
$2,300+
Reserves Required
1

Down Payment

Your largest upfront cost—but smaller than you think

FHA Down Payment (3.5%)
$13,300
💡
Best for

First-time buyers with credit scores 580-700 who want to get into a home faster. You'll pay mortgage insurance (MIP) for the life of the loan, but you're building equity instead of paying rent.

Conventional Down Payment (5%)
$19,000
💡
Best for

Buyers with 680+ credit who want slightly better rates than FHA. PMI can be removed once you reach 20% equity (unlike FHA's permanent MIP).

Conventional Down Payment (10%)
$38,000
💡
Best for

Buyers who've saved more and want lower monthly payments and lower PMI costs. Good middle ground.

Conventional Down Payment (20%)
$76,000
💡
Best for

Buyers who want lowest monthly payment and no PMI. But ask yourself: is it worth waiting 2-3 more years to save this? You'd pay $36,000+ in rent while saving.

2

Closing Costs

2-3% of purchase price—the fees you pay to close the deal

Lender Fees $2,800 - $4,200
Loan Origination Fee
Lender's fee for processing your loan (0.5-1% of loan)
$1,800-$3,800
Underwriting Fee
Reviewing and approving your loan
$400-$800
Credit Report Fee
Pulling your credit from all three bureaus
$50-$100
Flood Certification
Checking if property is in flood zone
$20-$50
Third-Party Fees $1,800 - $2,800
Appraisal
Professional valuation of the property
$450-$650
Title Search & Insurance
Verifying ownership and protecting against title issues
$800-$1,200
Survey
Mapping property boundaries
$350-$500
Recording Fees
Filing deed with county
$100-$200
Attorney/Settlement Fee
Closing agent fees
$300-$500
Prepaid Items (Escrow) $3,000 - $4,400
Prepaid Property Taxes
2-3 months taxes to start escrow account
$1,500-$2,200
Prepaid Homeowners Insurance
First year premium + 2 months escrow
$1,500-$2,200
Prepaid Interest
Interest from closing to first payment
$500-$1,000
Total Closing Costs
$7,600 - $11,400
💡
Pro Tip

You can negotiate! Ask the seller to pay part of your closing costs (called "seller concessions"). In a buyer's market, sellers often cover 2-3% of closing costs. Even in competitive markets, you might get 1-2%.

3

Pre-Closing Costs

What you pay BEFORE closing (out of pocket during the process)

Earnest Money Deposit
Good faith deposit when offer accepted (credited to down payment at closing)
$3,800-$7,600
Option Fee
Buys you 7-10 days to back out for any reason (Texas-specific)
$100-$500
Home Inspection
General inspection of all major systems
$350-$500
Foundation Inspection
Critical in DFW due to clay soil (highly recommended)
$150-$300
Sewer Scope
Camera inspection of sewer lines (recommended for older homes)
$150-$250
Termite Inspection
Check for wood-destroying insects
$75-$150
Total Pre-Closing Costs
Note: Earnest money is credited at closing, not an extra cost
$825-$1,700
4

Your Monthly Payment

PITI + PMI + HOA = Your REAL monthly housing cost

$380K Home with 3.5% Down (FHA) at 7% Rate

Principal
$610
Interest
$1,830
Property Tax
$728
Insurance
$175
PMI (MIP)
$260
$3,603/mo
Total Monthly Payment (without HOA)
⚠️
The P&I Trap

When you search Zillow, they show "Est. payment: $2,440." That's just P&I! Your ACTUAL payment with taxes, insurance, and PMI is $3,603+. Always calculate the FULL payment before falling in love with a house.

5

Hidden & First-Year Costs

The stuff that catches new homeowners completely off guard

⚠️ Budget for These (Most People Don't)

Moving Costs

$1,500-$4,000

Professional movers, truck rental, boxes, supplies. More if coming from apartment with stairs.

Immediate Repairs

$1,000-$3,000

Things you discover after moving in. Leaky faucet, broken sprinkler head, garage door issues.

Lawn Equipment

$300-$800

Mower, trimmer, hoses, sprinkler, tools. Or budget $100-150/month for lawn service.

Window Coverings

$500-$2,000

Blinds, curtains, shades. Most homes come with nothing on windows.

Appliances

$0-$3,000

Refrigerator often not included. May need washer/dryer.

Furniture

$1,000-$5,000+

Bigger rooms need bigger furniture. Outdoor furniture. Extra bedroom furniture.

Utility Deposits

$200-$500

Electric, gas, water, internet setup fees and deposits.

Annual Maintenance

$3,800/year

Budget 1% of home value annually. HVAC service, filters, pest control, small repairs.

First-Year Extra Costs
Beyond your monthly payment
$8,000-$20,000+

Calculate YOUR Total Cash Needed

Down Payment
$13,300
Closing Costs
$11,400
Pre-Closing Fees
$1,200
Total Cash Needed
$25,900
💡
Don't Forget Reserves

Most lenders want to see 2-3 months of mortgage payments in reserves AFTER closing. On a $3,600/month payment, that's $7,200-$10,800 you can't touch. Budget for this on top of your closing funds.

Key Takeaways

  • Buying a $380K home in DFW requires $25,000-$42,000 in cash depending on your down payment and closing cost negotiations
  • Your monthly payment will be $3,600-$4,000 including taxes, insurance, and PMI (NOT just the P&I shown on Zillow)
  • Plan for another $8,000-$20,000 in first-year costs: moving, repairs, furniture, maintenance
  • You can negotiate seller concessions to cover 1-3% of closing costs in many markets
  • If you stay 5+ years and can afford it comfortably, you'll build wealth instead of paying rent

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