Buyer Step by Step November 20, 2018

Step 19: Get Your Down Payment Ready


Now that we’re getting nearer to your closing date, it’s time to get your down payment ready! Remember that in addition to the down payment you need approximately 3% of the purchase price on top of the down payment for the closing costs.

See Closing Costs Estimates and Who Pays for What.

If any of these funds are going to be gifted to you by a family member, you need to let your mortgage lender know right away so he or she can get approval from the underwriter for the funds.

It’s best if the down payment and closing cost funds are transferred into one account. This account must be disclosed to your mortgage lender and you must let him or her know this is the account you’re going to be using for the down payment as the funds have to be tracked.

Make sure you find out what time your bank stops accepting same-day wire transfers as it’s not the same as their regular business hours. For example, they may be open until 8 pm, but the cut off for same-day wire transfers is 3 pm. In that scenario, you’re going to need to finish the wire transfer before 3 pm.

Plan ahead if you need to schedule time off work, as you will have to go to your bank in person to conduct a wire transfer.