Homebuyer planning
Mortgage closing costs: know what to bring to closing.
Your down payment is only part of the cash you may need. Closing costs, prepaid expenses, deposits and credits all affect the final amount. Start with a written estimate, not a rule of thumb.
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Separate the down payment from the other costs
Keep three lines in your budget: your down payment, the costs of obtaining the loan and completing the transaction, and money collected for items such as insurance or taxes. Add a separate cushion for moving and unexpected repairs. Those everyday expenses do not disappear when you get the keys.
Use your Loan Estimate as the starting point
The Estimated Cash to Close section brings together the down payment, closing costs, deposits and applicable credits. Ask which amounts are estimates and which may change. A seller credit can help with eligible costs, but it is not a promise of cash back or a substitute for every dollar of your down payment.
Prepare a comfortable cash-to-close plan
Bring your purchase budget and the amount you want to keep in savings to your advisor conversation. Before moving funds, ask how they should be documented. Verify any wiring instructions directly with your closing professional using a trusted phone number—not a number in an unexpected email.
Sources and further reading
This is not a loan approval or commitment to lend. Final eligibility depends on full application, credit, income, assets, property, occupancy, lien position, and underwriting review.
Here's what we'd discuss together
- Separate the down payment from the other costs
- Use your Loan Estimate as the starting point
- Prepare a comfortable cash-to-close plan
Technology helps us prepare. A real advisor helps you decide.
Frequently asked questions
Are closing costs included in my down payment?
No. They are separate expenses. Your estimated cash to close accounts for both, along with deposits, credits and other adjustments.
Does a seller credit cover all closing costs?
Not necessarily. Eligible expenses and limits depend on the loan and transaction. Review the proposed credit before relying on it in your budget.
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