Your down payment is not the only money needed when buying a property.

Buyers should also plan for closing costs.

These can include:

• Lender fees
• Title charges
• Prepaid taxes
• Insurance
• Escrows
• Appraisal
• Inspection costs

A simple planning estimate might be around 3% to 4% of the purchase price, depending on the property and loan.

But buyers may not have to pay everything themselves.

Seller credits, lender credits, and certain assistance programs may reduce the cash required.

Before shopping, ask your lender for three numbers:

Purchase price.

Estimated monthly payment.

Estimated cash to close.

Those three numbers will tell you much more than simply asking, “What rate can I get?”

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