What belongs in my cash-to-close budget?
Start with the purchase price and the down payment appropriate to your financing. Then add the closing costs and prepaid expenses your lender and escrow team identify. These can include loan charges, title and escrow services, insurance, prepaid interest, and amounts placed into an escrow account. The exact items depend on your transaction; this tool does not assume a particular loan program or fee schedule.
Keep a separate reserve for inspections, moving, utility setup, immediate maintenance, and other expenses paid outside closing. An affordable monthly payment and an appropriate savings cushion matter alongside the amount needed to get the keys.
How does the illustrative $450,000 example work?
This example is illustrative, not a quote: a $450,000 home with 5% down requires a $22,500 down payment. Add $13,500 for estimated closing costs and prepaids, then subtract an eligible $5,000 seller credit. Total estimated cash needed is $31,000. If you have already paid $4,500 in earnest money, estimated cash still due at closing is $26,500.
The deposit is counted toward the total rather than added a second time. Changing the purchase price, down payment, costs, or credits changes your estimate. Your lender must confirm whether the assumed credit is permitted and how it may be applied.
How should I treat earnest money and credits?
Earnest money is a deposit handled according to the purchase contract. If applied to the transaction at closing, it reduces the additional funds you still need to provide. It does not automatically reduce the property's price, and its treatment if the contract ends depends on the agreement and circumstances.
Enter seller and lender credits only once. A requested credit is not an agreed credit, and an agreed credit still needs to meet lender and program requirements. Seller or lender credits generally cannot replace your required down payment. If your entries exceed eligible costs, ask your lender to reconcile the numbers instead of assuming cash back.
Which numbers should I confirm with my lender?
Ask for an explanation of your down payment, itemized loan costs, prepaids, escrow reserves, and any lender credit. Compare estimates using the same purchase price and financing assumptions. Your lender explains qualification, rates, loan programs, and the formal disclosures applicable to your loan.
Before closing, reconcile your deposit and credits with the closing documents and escrow instructions. Costs can change as the closing date and other details become final. Verify any wiring instructions directly with the appropriate professional using a trusted phone number; do not rely on an unexpected email changing where your funds should go.
How can I turn an estimate into a buying plan?
Use this estimate to identify questions, not to decide that a particular home or loan is affordable. Bring your comfortable payment range, available savings, expected timing, and reserve needs to your lender and Team PACT. We can coordinate the search and contract strategy around the financing information you receive.
The NAVIGATE™ Buyer Program connects discovery, preparation, tours, offer strategy, due diligence, and closing coordination. Buyer representation compensation is negotiable and documented in a written agreement; it is not automatically free. A personalized plan should account for that agreement as well as financing and purchase expenses before you commit.