Budget for lender, title, appraisal, recording, prepaid tax, insurance, and other transaction costs.
Why it matters
The down payment is only one part of cash needed to close.
What to focus on
- Request itemized estimates
- Separate prepaid items
- Keep a reserve
ExampleA buyer planning 5% down should also estimate separate closing costs and prepaid items rather than assuming the down payment covers everything.
Put it into practice
- Ask for a Loan Estimate
- Create a cash-to-close range
- Avoid moving reserve money prematurely
Write down one decision and schedule a short review. Small, repeatable steps are easier to maintain than a one-time overhaul.
Educational information only. Money in Reach does not provide financial, investment, tax, insurance, credit, mortgage, or legal advice.