Start with the complete number
Your down payment is only one part of cash to close
The amount you bring to is not simply your . can include several categories, while deposits, credits, financed amounts, and other adjustments may offset parts of the total.
No single percentage works for every Arizona purchase. Use property-specific information and current disclosures as the transaction develops.
The six money buckets
See what adds to—or adjusts—the total
Down payment
The purchase-price portion not financed by the primary mortgage.
Loan and closing costs
Applicable lender charges and third-party services such as , settlement, , or .
Prepaid items
Timing-based items such as prepaid and an initial homeowners-insurance premium.
Initial escrow funding
A starting balance for future taxes and insurance when the loan uses an account.
Deposit already paid
may appear in final accounting as money already paid, depending on the contract and transaction.
Credits and adjustments
Seller or lender credits and transaction-specific adjustments may reduce—but do not erase—the need to plan.
Not every transaction contains every item, and the final accounting depends on the actual property, contract, financing, timing, services, and credits.
Costs are not one universal percentage
Separate financing charges from third-party services
can include applicable lender or charges, , credit-related charges, or settlement services, , and other selected or required services. A category is not a promise that every fee applies.
A reduces the amount financed. Twenty percent is not universally required; the appropriate structure depends on the buyer and program. Compare Loan Options without treating a general guide as an approval.
Prepaids
Timing costs are not all lender fees
Prepaid may cover the period between and the next payment cycle. may be paid in advance, and property-tax timing can affect settlement figures. These items can increase funds needed even though they are not all charges for making the loan.
Initial funding is different from the monthly portion
When an escrow account is used, an initial deposit establishes its starting balance. Later mortgage payments can include an escrow portion for future tax and insurance bills. Escrow is not required for every mortgage or transaction.
Money paid earlier can affect final accounting
Earnest money is generally deposited earlier under the purchase contract and may be credited in the final settlement accounting when applicable. Its treatment depends on the transaction and contract. Ask the appropriate real-estate or settlement professional; this is not contract or legal advice.
Seller credits
A seller contribution may cover eligible costs within applicable limits. Treatment depends on the program, occupancy, transaction, contribution type, and other rules—there is no universal concession limit.
Lender credits
A may reduce upfront costs in exchange for different rate or pricing. Compare the upfront effect with the payment and total cost.
Discount points
are an upfront cost associated with obtaining a particular rate or pricing structure. Paying points does not guarantee savings; the value depends on terms and how long the loan is kept.
Illustrative example—not a quote
One way the pieces can come together
Round hypothetical figures make the accounting easier to see. Actual transaction figures vary.
- Purchase price
- $400,000
- Down payment
- $20,000
- Estimated costs, prepaids, and escrow
- +$12,000
- Earnest money already deposited
- −$4,000
- Illustrative seller/lender credits
- −$3,000
- Illustrative estimated cash to close
- $25,000
Illustration only. This is not a Loan Estimate, Closing Disclosure, approval, or offer. Actual figures vary by property, contract, loan, timing, and settlement accounting. APR unavailable with these inputs: this cash worksheet defines no note rate or repayment schedule, and its combined costs do not identify the complete APR finance charges. It is not a loan payment or credit-cost example.
Follow the disclosures
Loan Estimate first; Closing Disclosure near closing
For most covered mortgages, the Loan Estimate provides an early estimate of loan terms and costs. The Closing Disclosure presents final transaction disclosures before closing. Compare them and ask about changes rather than relying on an online planning scenario.
See the Mortgage Process →Official guidance
