The numbers · 2 min read
The down payment is not all the cash you need.
The down payment goes toward the home’s purchase price. Closing costs cover the transaction and financing. Your cash to close brings these pieces together.
Put the pieces together
Start with the down payment and estimated closing costs. Account for prepaid expenses and initial escrow deposits. Then subtract eligible credits and deposits already paid.
Understand earnest money
Earnest money is a purchase deposit. It is usually credited in the closing calculation, rather than being an extra down payment. The purchase contract determines when it can be returned or forfeited.
Leave yourself room
The final amount can change. Use your Loan Estimate and later your Closing Disclosure to review it, and keep an emergency cushion outside your purchase budget.
Before wiring money, independently verify instructions using a trusted, previously confirmed phone number.
Further reading: CFPB Loan Estimate Explainer ↗
General education from Bethlehem Mortgage Solutions. Your circumstances and loan requirements may differ. This guide is not an offer or an approval decision.