Buying a Home
Down payment and cash to close
Short answer
The down payment is the portion of the purchase price not financed by the first mortgage. Cash to close also reflects closing costs, prepaids, credits, deposits, and other adjustments.
Detailed explanation
The down payment is the portion of the purchase price not financed by the first mortgage. Cash to close also reflects closing costs, prepaids, credits, deposits, and other adjustments.
A purchase mortgage moves through planning, application, verification, underwriting, required disclosures, and closing. The exact order and documentation can vary by property, program, lender, and jurisdiction.
What this means for you
Do not treat the down-payment amount as the full amount due at closing. Review the cash-to-close calculation on the applicable disclosures and confirm how verified funds will be delivered.
Important limitations and exceptions
- Availability, eligibility, pricing, documentation, and state coverage vary. This article is general education and is not an approval, rate quote, Loan Estimate, commitment to lend, or recommendation for a specific consumer.
Related Imperium resources
A linked program is not a statement that it is suitable, available, or approved for a particular consumer.
Primary references
Educational-information disclaimer
This article provides general mortgage education. It is not legal, tax, investment, or financial-planning advice; an approval or credit decision; a commitment to lend; a rate lock; a Loan Estimate; or a recommendation for your specific circumstances. Consult the appropriate licensed or independent professional for transaction-specific guidance.