Lending with Melissa · Texas mortgage guidance
How much money do you need to buy a home?
Your down payment is only one part of the answer. You may also need money for closing costs and prepaid items such as insurance and taxes, with possible credits or deposits reducing the amount due at closing. Your loan program and property determine the estimate. Start with a payment and cash-to-close range you can live with.
Do you need 20% down?
No. Some loan programs allow a smaller down payment for eligible borrowers. Compare the total monthly payment, mortgage insurance when applicable, and money you need to keep after closing.
What is cash to close?
Cash to close is the estimated amount you bring to settlement after the down payment, closing costs, deposits, seller credits and other adjustments are counted. It is different from the down payment alone.
When will you know the real numbers?
A Loan Estimate helps you compare the initial terms, payment and estimated closing costs. Amounts can change as your property and transaction details become known. Review the later Closing Disclosure and ask about any changes you do not understand.
Learn more: Consumer Financial Protection Bureau: how to read your Loan Estimate.
Loan options, costs and eligibility vary by borrower, property and program. This information is educational and is not a commitment to lend.