You’ve been a renter for years, but now that your lease is almost up and you’ve taken a job that will keep you closer to home, you’re thinking it might be time to buy. That’s right. You said it — buy. You’re ready to be a homeowner, but is your pocketbook?

There’s no doubt about it. Buying a home requires some money upfront, but perhaps not as much as you think. Here is quick breakdown of the initial costs.

Down payment

Lenders used to require 20 percent of the purchase price of the home for a down payment, but today that is no longer the case. While some institutions will lend 100% of the purchase price of the home, eliminating the need for a down payment, others require substantially less, 3 percent to 10 percent of the purchase price. Should you take this route, however, you may have to pay private mortgage insurance (PMI) until you reach 20 percent of equity in your home. PMI usually costs anywhere from .5 percent to .85 percent of the loan amount and protects lenders in the event of a loan default.

Earnest money

Not all buyers are legitimate. To prove to the seller that you are and your offer on their house is serious, you may need to put up some earnest money. This is usually about 2 percent of the purchase price of the home and will be applied toward the down payment should your offer be accepted. If your offer is rejected, you will receive the earnest money back.

Closing costs

There are many costs associated with making the actual sale of a home happen from attorney fees and title insurance to appraisals, points and tax escrows. These make up what is known as closing costs and run about 3 percent to 5 percent of the purchase price of the home. Closing costs are generally paid at the time of closing.

Post-purchase reserve funds

Depending upon the state of your finances and the level of risk you pose to the lender, you may be required to have two to three months of mortgage payments or post-purchase reserve funds. These should be put in a bank account that you can easily access.

This is just a brief list of the general initial costs in buying a home. There may be more or less depending upon your situation. You might receive assistance with the closing costs from the seller or qualify for one of the grants available to first-time homeowners to use as a down payment. You might not need any post-purchase reserve funds. An experienced real estate agent and lender are your best bet for getting a good deal.

Purchasing a home does involve some initial costs upfront. These are a one-time deal, however. Your mortgage payment, on the other hand, is something you will be making monthly for the next 15 to 30 years. It may include principal and interest on your loan, PMI, homeowner’s insurance and taxes. Discuss ALL of the costs involved in buying a home with your real estate agent and make sure you are financially ready to take the plunge.