Closing costs: planning beyond the down payment

Separate cash to close from ongoing expenses

Your down payment is only one part of the funds needed to complete a purchase. Review lender charges, third-party services, prepaid amounts and escrow deposits on your Loan Estimate. Some charges are estimates until the closing details are known.

Ask your lender to explain estimated cash to close and the treatment of earnest money, credits and other funds. Do not use a general percentage as a substitute for your own written estimate.

Compare the final disclosure

Review the Closing Disclosure and compare it with your Loan Estimate. Ask about changes in loan terms, monthly payment and cash to close. Timing requirements and permitted changes have specific rules; ask your lender or settlement professional to explain your situation.

Plan separately for moving, utilities, insurance, maintenance and any immediate repairs. Keeping a reserve can matter as much as reaching a down-payment target. A self-reported budget is not lender approval.

Protect the transfer

Verify payment instructions directly with the settlement professional using a number independently confirmed earlier. Unexpected last-minute changes to wire instructions are a warning sign. Never share bank credentials in a chat or send a transfer based solely on a new email.