What to budget beyond the down payment.

Put upfront costs on their own list.

Your down payment is only one part of the purchase budget. Ask the lender and closing professional for an estimate of loan and settlement charges, prepaid expenses, and any funds required for an escrow account. These depend on the loan and property.

Track inspections, appraisals, and other charges paid before closing separately. Ask which payments will be credited at closing so you do not count them twice. Deposits and contract terms should be reviewed with your agent and closing professional.

Use the loan documents to refine your estimate.

Compare Loan Estimates using similar loan terms and assumptions. Look at interest, fees, mortgage insurance, and estimated cash to close rather than the rate alone. The CFPB's explainer identifies where these items appear.

Later, compare your Closing Disclosure with your most recent Loan Estimate. Ask about differences, and verify the final amount and payment method directly with your closing professional.

Budget for the home after you get the keys.

The mortgage budget tool includes principal and interest, property taxes, homeowners insurance, mortgage insurance, and HOA dues. Some costs may be paid separately from the lender's bill. Tax and insurance amounts can change.

Add utilities, internet, maintenance, and any near-term work you expect after moving. For a property with a well, septic system, private road, or large lot, ask the appropriate specialists about ongoing responsibilities.

Protect a cushion for the first year.

Set a personal reserve target before choosing your down payment. Consider how the purchase affects your ability to handle a repair, replacement, or change in income. There is no single reserve amount that suits every household.

Use the checklist below to prepare for your lender conversation. Estimates are most useful when you know which ones are quotes and which are still assumptions.

• Down payment and estimated cash to close.
• Inspection and other costs paid before closing.
• Moving, utility setup, and immediate repairs.
• A comfortable recurring housing budget.
• Savings remaining after all of the above.