“A down payment is not the only cash you may need to buy a home. If you plan around the down payment alone, closing costs or required reserves can become an unpleasant surprise right when you are ready to move.”
Four cash buckets
I’m Itzel Gonzalez, a real estate agent serving Riverside County and the Inland Empire. Let’s break your cash requirement into four simple buckets so you can build a realistic plan before touring homes.
Down payment
The amount is not automatically twenty percent. Different loan programs may allow different minimums, and eligibility depends on your finances, the property, occupancy, and lender guidelines. Ask a qualified lender to show you several scenarios instead of assuming one percentage.
Closing and escrow
Closing costs can include lender charges, appraisal, escrow and title items, prepaid interest, insurance, and initial tax or insurance deposits. You may also need an earnest-money deposit and money for inspections during escrow. Use a written loan estimate rather than an online rule of thumb.
Cash after closing
Keep room for moving, utility setup, immediate repairs, appliances, and an emergency reserve. Your comfortable purchase price may be lower than the maximum amount on a pre-approval. Ask for a worksheet at two or three purchase prices.
Close: Visit the Buyer Center on my website or contact me. I can help you organize the right questions and connect the financing numbers to the homes you are considering.