Do I need money in reserves after closing, separate from my down payment?

Yes — and it's one of the most overlooked parts of buying. Beyond your down payment and closing costs, you should keep a cash cushion that survives closing day. Many lenders require a few months of housing payments in reserves (more for jumbo loans, second homes, or investment properties), but even when they don't, you'll want one. New homeowners routinely face immediate, unbudgeted expenses: a failing appliance, a roof leak, an HVAC repair, or simply furnishing and moving costs. A safe target is three to six months of your full housing payment set aside before you buy, kept in liquid savings — not counted as part of your down payment. Draining every dollar to maximize your down payment is risky, because a single big repair could force you onto high-interest credit. Build that cushion first at wealthserene.com/tools/emergency-fund.