Start with the down payment and reconcile the rest
Ask for an itemized estimate covering lender charges, title and escrow, recording, any transfer taxes you agreed to pay, prepaid interest and insurance, and initial escrow funding if applicable. Which party pays a charge can depend on the contract and property location. Reconcile deposits already paid and credits that the loan and contract allow.
| Hypothetical purchase worksheet | Amount |
|---|---|
| Down payment on a $550,000 purchase at 5% | $27,500 |
| Loan and settlement charges | $7,000 |
| Prepaids and initial escrow funding | $4,000 |
| Earnest money already paid | −$10,000 |
| Allowed seller credit | −$3,000 |
| Estimated cash still needed at closing | $25,500 |
The buyer has already spent $10,000 on the deposit, so the total contribution in this example is $35,500. Keep moving costs, repairs, and a possible supplemental tax bill in a separate after-closing budget. Compare the Loan Estimate with the Closing Disclosure as figures are finalized.
See the California property costs guide and how to estimate your supplemental tax exposure.