Start by picking a realistic home-price target, then estimate the down payment and closing costs you will need to reach it. The CFPB recommends starting with a savings target, checking credit, and shopping around for a mortgage rather than guessing at the number.
Automating transfers into a separate home fund usually works better than saving whatever is left over. A dedicated account makes progress visible and reduces the temptation to spend the money on something else.
You do not always need 20% down, but a larger down payment can lower loan costs. The CFPB notes that many loans require less than 20%, so the right target is the one that matches your price range, loan options, and timeline.
Sources
This is general information, not professional financial advice. For decisions about your situation, talk to a qualified professional.
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