One of the biggest myths in real estate is that you need a massive pile of cash sitting in your bank account before you can even think about buying a home. Some buyers have way more than they need. Others have been ready for longer than they realize.

So let’s talk actual numbers. Here’s what you really need to have in hand before you buy a home in Atlanta.

Your Down Payment

This is the big one everyone thinks about first. And yes, it’s real money. But the idea that you need 20% down to buy a home is one of the most persistent myths we run into.

Twenty percent down eliminates PMI, which is private mortgage insurance, and that’s a legitimate benefit. But there are plenty of loan programs that require far less. Conventional loans can go as low as 3% down. FHA loans require 3.5%. VA loans and USDA loans, for those who qualify, can require zero down.

If you’re buying a $400,000 home in Atlanta, 3% down is $12,000. That’s a very different conversation than $80,000.

Talk to a lender early. Find out which loan programs you qualify for before you decide what your down payment needs to look like.

Earnest Money

When you go under contract on a home in Atlanta, you’ll be expected to put down earnest money. This is a good faith deposit that tells the seller you’re serious. In the Atlanta market it typically runs between 1% and 3% of the purchase price, though that can vary depending on the situation and how competitive the offer needs to be.

The important thing to know is that this money is not in addition to your down payment. It gets applied toward your closing costs or down payment at closing. But you do need to have it available immediately when you go under contract, often within 24 to 48 hours of the contract being binding.

Inspection, Appraisal, and Survey Fees

In Georgia, buyers pay for their own inspections. A general home inspection typically runs between $700 and $2,000 depending on the size and age of the home. If the inspector recommends specialists, which happens often on older Atlanta homes, you could be looking at additional costs for things like a sewer scope, radon test, or HVAC inspection.

You’ll also need to budget for your appraisal, which your lender will require before they’ll finalize your loan. In the Atlanta market appraisals typically run between $500 and $800.

If a survey is needed, which depends on the property and the loan type, budget an additional $700 to $1,200.

Due Diligence Period

You’ll also want to factor in Georgia’s due diligence period. This is a window of time after you go under contract during which you can walk away for any reason. Understanding how this works and budgeting for the inspections that happen during it is part of being a prepared buyer.

Closing Costs

This is the one that catches buyers off guard more than anything else. Closing costs are the fees associated with finalizing your loan and transferring ownership of the property. In Georgia, buyers can typically expect closing costs to run between 3% and 6% of the loan amount.

That includes things like lender fees, title insurance, attorney fees, prepaid property taxes, and prepaid homeowners insurance. Your lender is required to give you a loan estimate early in the process that breaks all of this down. Read it carefully.

One thing worth knowing: closing costs are sometimes negotiable. In certain market conditions you can ask the seller to contribute toward your closing costs as part of the offer. We navigate this on every transaction and it’s absolutely worth discussing with your agent before you write an offer.

As the Consumer Financial Protection Bureau outlines, understanding your loan estimate and closing disclosure is one of the most important steps in the homebuying process. Don’t sign anything you don’t fully understand.

Cash Reserves

This one doesn’t get talked about enough. Most lenders want to see that you’ll have some money left in your account after closing. Not because they’re being nosy, but because it’s a signal that you’re not going to be immediately underwater if something unexpected happens.

Beyond what lenders require, we always encourage buyers to have a cushion of their own. Owning a home means things will eventually need to be fixed. Having a few months of mortgage payments and a small repair fund set aside going into closing is just smart.

So What’s the Real Number?

It depends on your loan program, your purchase price, and your situation. But here’s a rough framework for an Atlanta buyer purchasing a $400,000 home with a 5% down payment:

Down payment: $20,000
Earnest money: $4,000 to $12,000 (applied at closing)
Inspection: $700 to $2,000
Appraisal: $500 to $800
Survey: $700 to $1,200
Closing costs: $8,000 to $16,000 (may be negotiated with seller)
Total: $29,900 to $40,000

That’s a real number you can plan around. And if some of that feels out of reach right now, that’s okay too. Knowing where you stand is the first step to getting there.

If you’re an Atlanta buyer trying to figure out if you’re ready, let’s sit down and talk through it.