Four numbers to separate
| Term | Meaning |
|---|---|
| Down payment | The portion of the purchase price you pay rather than borrow. |
| Closing costs | Charges for the loan and transfer of ownership, separate from the down payment. |
| Cash to close | What remains due at settlement after deposits, credits, and other adjustments. |
| Savings after closing | Money kept for moving, emergencies, and home repairs. |
A deposit is usually credited toward the amount you owe at closing. It is not an extra down payment. Track payments already made so you do not count the same dollars twice.1
The full monthly payment
Include property taxes, homeowner insurance, mortgage insurance where required, and association dues. Then add utilities, maintenance, parking, and commuting to your household budget.
Use the actual jurisdiction for taxes and get an insurance quote. Listing payment estimates may omit costs or assume a different loan.
Break down the cash due
| Expense | What to ask |
|---|---|
| Lender fees and points | What does the loan cost, and are you paying extra upfront for a lower rate? |
| Title and settlement | Which services can you shop for, and what coverage does each policy provide? |
| Taxes and recording | Which state and local charges apply to this transaction? |
| Prepaids and escrow | How much is collected in advance for interest, insurance, and the lender’s tax and insurance account? |
| Inspections and appraisal | When are these paid, and are they already shown on the closing statement? |
Virginia recording and transfer charges depend on the document and transaction. Ask the settlement provider to itemize them instead of applying a single regional percentage.6
Compare loan estimates
Request estimates using the same purchase price, down payment, loan term, and rate-lock assumptions. Compare the cash required and the payment, not just the interest rate.1
- A larger down payment leaves less cash for moving and repairs.
- Discount points cost money upfront in exchange for a lower rate. Compare the savings over the time you expect to keep the loan.
- Lender credits can reduce upfront costs in exchange for a higher rate.
Adjust for the property
A condo’s dues may cover expenses you would pay directly in a detached home, but you still need to understand reserves, insurance, and possible assessments. Read the resale package and ask about move-in charges and planned work.7
For a detached home, price known roof, heating, drainage, or other near-term work. Larger lots and private utilities can change upkeep costs considerably. Set the repair allowance from the property, not just its asking price.
Check the cash arithmetic
Supporting detailExample: cash due on a $700,000 purchase
- Purchase price: $700,000; down payment: $70,000.
- Closing costs and prepaids: $16,000; deposit already paid: $15,000; seller credit: $5,000.
- Inspection costs paid separately: $800, not included in the $16,000.
- Cash due at closing: $70,000 + $16,000 − $15,000 − $5,000 = $66,000.
- Total purchase cash: $66,000 + $15,000 + $800 = $81,800.
- Moving and emergency savings are additional. The lender must approve any credit.
Illustrative figures only. Ask for estimates for your property and loan.
Keep separate columns for paid already, due at closing, and after closing. Update the figures as quotes arrive.
Review the final statement
Compare the Closing Disclosure with your Loan Estimate, contract, and written quotes. Check the loan terms, credits, deposit, taxes, and funds due. Ask about each unexplained change.2
Before transferring funds, call the settlement company at a number you have independently verified. A last-minute email changing bank details needs direct confirmation.
Your next steps
Common questions
Are closing costs included in the down payment?
No. Budget for both. Your cash-to-close figure combines the amounts due and subtracts deposits, approved credits, and other adjustments.
How much should I budget for closing costs?
Get a Loan Estimate and settlement quote for the actual property and loan. Fees, taxes, prepaids, and credits vary too much for one percentage to be a reliable final budget.
Does a seller credit reduce the price?
A credit typically helps with permitted costs rather than changing the contract price. Loan rules limit its amount and use; have your lender confirm the treatment before offering.
Sources and dates
Published June 27, 2026. Source dates are listed below. Confirm transaction-specific requirements with the responsible provider.
View sources (7)
- 1Consumer Financial Protection BureauLoan Estimate Explainer ↗Source checked September 22, 2026
- 2Consumer Financial Protection BureauClosing Disclosure Explainer ↗Source checked September 22, 2026
- 3Consumer Financial Protection BureauWhat Is Mortgage Insurance and How Does It Work? ↗Source checked September 22, 2026
- 4Consumer Financial Protection BureauFHA Loans ↗Source checked September 22, 2026
- 5U.S. Department of Veterans AffairsVA Funding Fee and Loan Closing Costs ↗Source checked September 22, 2026
- 6Virginia Legislative Information SystemVirginia Recordation Tax Act ↗Source checked September 22, 2026
- 7Virginia Legislative Information SystemVirginia Resale Disclosure Act ↗Source checked September 22, 2026