Down payment is only one component
Your down payment is the portion of the purchase price not financed. Minimum down payments vary by loan program, borrower and property type.
Some eligible buyers may use low-down-payment conventional financing, FHA loans or VA benefits, while others choose larger down payments to reduce the loan balance.
Closing costs and prepaid expenses differ
Closing costs can include appraisal, credit reporting, underwriting, title, recording and other charges. Prepaid expenses may include insurance premiums and daily interest.
Your lender's Loan Estimate helps break these out. Compare figures using the actual property whenever possible.
Texas taxes affect escrow planning
Property taxes may be a meaningful part of a Texas housing payment. Estimated taxes can vary based on assessed values, exemptions and local taxing entities.
Do not assume a seller's tax bill automatically predicts your future tax bill. Review the property's circumstances and applicable exemptions.
Credits and deposits change the final amount
Earnest money, lender credits, builder incentives, seller concessions and eligible assistance may affect how much money you bring to closing. Each program has limits and documentation rules.
Ask for an updated itemized estimate before committing to a purchase and again as the closing date approaches.
Frequently asked questions
Is earnest money an extra charge?
It is typically credited toward your funds due at closing when the contract closes, subject to the transaction terms.
Can the seller pay all my closing costs?
Seller credits may cover eligible costs up to program limits, but they generally cannot be used for everything.
Discuss your mortgage options
Every loan scenario is different. Sarah can help review eligibility, program terms and tradeoffs for your situation.
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