How much cash do I really need at closing beyond the down payment?
Beyond your down payment, budget for closing costs that typically run 2% to 5% of the loan amount, covering lender origination fees, appraisal, title insurance, recording fees, and prepaid items. Prepaids include several months of property taxes and homeowners insurance to seed your escrow account, plus prepaid interest from your closing date to month-end. You will also need any earnest money already deposited to be credited back. Some lenders require a few months of mortgage payments in cash reserves after closing, especially for jumbo loans. Get your itemized figure from the Closing Disclosure three business days before closing and compare it to your original Loan Estimate. Ask about seller concessions or lender credits to reduce the cash you bring.