Down Payment & Closing Costs
What the down payment and closing costs are, and how to plan for both.
Two separate sets of upfront costs come with buying a home: your down payment and your closing costs. Planning for both helps you avoid surprises.
Down payment
The down payment is the portion of the purchase price you pay upfront. The amount depends on the loan program and your situation, and a licensed loan originator can explain your options.
Closing costs
Closing costs are the fees and prepaid items due at closing — things like lender fees, title and settlement charges, and prepaid taxes or insurance. They are separate from your down payment.
This guide is general educational information and not financial, legal, or tax advice. Speak with Bart Poynor, Licensed Mortgage Loan Originator, about your specific situation.
More Getting a Mortgage Guides
- How Pre-Approval WorksWhat pre-approval is, how it differs from pre-qualification, and why starting early helps you shop with confidence.
- What Lenders Look AtThe core factors behind a mortgage decision and how to prepare each one.
- How Much Can You AffordWhy your maximum approval is a ceiling, not a budget, and how to find a comfortable payment.
- Your Monthly PaymentA breakdown of what's actually inside your monthly mortgage payment.
- Loan Program BasicsA neutral overview of common loan program categories — without rates or eligibility claims.
- Documents You'll NeedA general checklist of paperwork to gather before you apply.
- Common Mortgage MistakesAvoidable moves that put a closing at risk, and how to stay on track.
- Construction & RenovationHow building or renovating changes the financing picture.
- Refinancing BasicsWhat refinancing is and common reasons buyers consider it.
Questions about financing?
Bart can walk you through your options and what to expect.