Buying a home requires more than a down payment. Your cash plan may include closing costs, prepaid taxes and insurance, an earnest-money deposit, and credits or adjustments that depend on the contract and loan. The exact amount varies by property, loan program, lender, timing, and negotiated terms.
Start with the down payment
Your down payment is the portion of the purchase price you pay at closing rather than borrowing. A larger down payment can change the loan amount and may affect mortgage insurance, but the right amount depends on your budget and loan options. Do not use every available dollar without leaving room for reserves and moving or repair expenses.
Budget for closing costs and prepaids
Closing costs can include lender charges, title and settlement services, recording or transfer charges, and other transaction expenses. Prepaid items can include future property taxes, homeowners insurance, and interest. Ask for a written Loan Estimate and compare the estimated cash to close with other loan terms. Costs and credits should be reviewed with your lender and settlement professionals.
Understand earnest money and credits
An earnest-money deposit is commonly paid under the purchase contract and may be credited toward amounts due at closing, but the contract controls what happens if the transaction does not close. Seller or lender credits may reduce some costs but can have pricing, eligibility, or rate implications. Treat credits as part of a documented offer—not as free cash.
Build a California planning scenario
Use the closing-cost calculator to model down payment, estimated costs, prepaids, credits, and earnest money. Use the payment calculator to test monthly housing assumptions, and the California county loan-limit lookup to review published 2026 county ceilings. These tools are illustrative and do not determine eligibility, approval, or a final cash-to-close amount.
Before making a decision, compare actual lender disclosures, confirm the property-specific figures, and keep a reserve for maintenance, utilities, and unexpected expenses. You can compare loan programs, review Freddie Mac benchmark rate trends, or ask a California mortgage question.
Authoritative references
- Consumer Financial Protection Bureau: Loan Estimate guide
- Consumer Financial Protection Bureau: compare Loan Estimates
- Federal Housing Finance Agency: conforming loan limits
Educational information only. This page is not a loan offer, approval, legal advice, tax advice, or individualized financial advice. Confirm actual terms with licensed professionals and your written disclosures.