Your cash-to-close checklist
Down payment: the part of the price you pay from your own funds.
Closing expenses: loan and third-party fees, prepaid costs and escrow deposits.
Adjustments: subtract deposits already paid and approved credits or assistance. Ask which figures remain estimates.
You’ve saved for the down payment. What else will you need? When buying a home in Michigan, closing costs and prepaid expenses are part of the picture too. Get an itemized estimate early, before you decide how much of your savings to use.
What are you paying for?
Some charges cover making the loan, such as origination fees and any points you choose to pay. Others pay for appraisal, title and settlement services. You may also pay insurance, interest and initial escrow deposits at closing.
Those are different kinds of costs. A fee for a service is different from money set aside to pay future property taxes. Have your loan officer explain each category so you know where the money goes.
How much cash will you need?
Cash to close combines your down payment and closing expenses, with adjustments for a deposit you’ve already paid and any approved credits or assistance. Your Loan Estimate shows the calculation. Check which figures are estimates and which credits have conditions.
Compare the same loan
Use the same loan amount, term and timing when comparing offers. Look at the payment and fees together. A lower rate may come with higher upfront costs. Check whether the rate is locked and when that lock ends.
Read the documents before signing
For most mortgages, you receive a Closing Disclosure at least three business days before closing. Compare it with your latest Loan Estimate. If the payment, fees or cash to close look different, ask the lender to explain why.
Ask for other closing documents ahead of time when you can. The signing table is a difficult place to read everything for the first time.
Confirm where to send the money
Call your closing agent using a phone number you already trust to verify payment instructions. If an unexpected email changes those instructions, call again before sending funds.
Buying around Greater Lansing? Call us at (517) 580-5050. Tell us the price you’re considering and what you’ve saved. We’ll help you understand the payment and the money needed at closing.
Official resources
Educational information, not an offer to lend. Program rules, costs and availability can change. Ask a loan officer about current terms for your situation.
