Know What Makes Up The Cash To Close On Your Home Loan
We believe that all clients need to fully understand what it takes to close on their home loan. The cash needed to close has consistently provided confusion in all borrowers’ minds. Understanding what this consists of will better prepare you for the mortgage process and buying your dream home.
There are 3 main components that make out your cash to close. The easiest way to understand what composes the cash needed to close is to look at a real example.
Let’s say we have a $150,000 purchase price and the buyer is putting 10% down. The cash needed to close breaks down as follows:
$15,000 – Down Payment (This can range from 3% to 20% down or more)
$2,500 – Closing Costs (Usually between $2,200-$3,000)