Buying New Construction? Know How Much Cash You’ll Really NeedYou’ve signed the contract, paid the builder deposit, and construction is underway. It’s easy to feel like the biggest
Buying New Construction? Know How Much Cash You’ll Really Need
Dated: September 16 2026
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Buying New Construction? Know How Much Cash You’ll Really Need
You’ve signed the contract, paid the builder deposit, and construction is underway. It’s easy to feel like the biggest cash hurdle is already behind you.
But that deposit doesn’t necessarily cover everything you’ll need when it’s time to close.
Depending on your contract and financing, your deposit may be credited toward the purchase at closing, while you could still need funds for:
💰 Remaining down payment
📋 Buyer closing costs and prepaid expenses
🏦 Lender-required cash reserves, if applicable
🔑 Other costs associated with your new construction purchase
Before signing a new construction home contract, ask your builder, lender, and real estate agent to help you understand the complete cash timeline:
What’s due when you sign? What gets credited at closing? What will you still need to bring to closing? And how much cash should remain available afterward?
Knowing those numbers early can help prevent an unpleasant surprise when your beautiful new home is almost ready and suddenly everyone wants more money. Funny how closing has that effect.
Save this before buying a new construction home.
Nick Flerlage
The foundation of a farm life shaped Nick Flerlage more than almost anything else in his life. He grew up on a tobacco farm in rural Southern Maryland, the youngest of five children. His Dad was a....
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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
Updated on September 16, 2026 4:01 PM UTC
