Step 18 to Buying a Home: Get Your Down Payment Ready

Get Your Down Payment & Closing Funds Ready

As closing approaches, it’s time to line up your down payment and closing costs. Plan for your down payment plus roughly 3% of the purchase price in cash for closing costs.

Gifts & Which Account to Use

• If any funds are gifted by family, tell your loan officer right away so underwriting can approve and document them.
• Move all funds into one account you’ll use for closing. Disclose this account to your lender so funds can be tracked.

How & When You’ll Receive the Final Amount

One business day before closing, your lender or attorney will email a close estimate and wire instructions. Title companies often can’t finalize figures until then.

• Amounts under $50,000 can usually be paid by cashier’s check; amounts over $50,000 must be wire transferred.
• Expect to send an extra $1,000–$2,000 above the estimate to cover last-minute adjustments. Any overage is refunded at closing.
• Wire the funds the day before closing—title cannot accept them same-day.
• If final figures aren’t ready by day’s end, your lender will provide an estimate to use for the wire.

Call Your Bank Now (Wire Logistics)

• Ask how to initiate a wire transfer (many banks require an in-person visit).
• Confirm the bank’s wire cutoff time (often ~4:00 PM) and plan accordingly for the day before closing.
• After you wire, email us, your attorney, and your loan officer so we can confirm receipt with the title company.
• Let your employer know you may need to step out briefly the day before closing to complete the wire.

Any extra funds you wired will be refunded to you at closing.