What belongs in the cash plan?
Start with separate buckets. The lender’s Loan Estimate is a useful planning document; the Closing Disclosure shows the transaction’s closing figures. Neither replaces a separate moving and reserve budget.
Different costs, different timing| Bucket | What to understand | Who confirms it |
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| Down payment | Your contribution toward the purchase price. It is separate from fees and does not have to be 20% for every loan. Loan options and monthly costs need a lender’s review. | Your lender |
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| Closing fees | Lender, title, escrow, recording and other transaction charges. Check which quoted items are already included so you do not count them twice. | Lender, escrow and title |
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| Prepaids and escrow deposits | Items such as prepaid interest, insurance and initial tax or insurance account deposits. Timing affects the amount. | Lender, insurer and escrow |
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| Earnest money | A contract deposit, typically paid earlier and credited in the closing calculation. The amount, deadline, holder and consequences if the purchase ends come from your agreement. | Your contract and transaction team |
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| Costs before closing | Some expenses, such as inspections, specialist evaluations or an appraisal, may be paid before closing. Include them in your budget, but if you’ve already paid them, don’t count them again when calculating how much money you still need. Ask when each payment is due and whether it is refundable if you don’t buy. | Inspector, specialists and lender |
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| Moving and reserve | Moving, utility setup, immediate repairs and a practical cushion for ownership. Money you keep is part of the plan, even though it is not sent to escrow. | Your budget and actual quotes |
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What might the plan look like at $500,000?
Here is an illustration, not a quote, market average, loan recommendation or statement of eligibility. We use the same made-up fees at three prices to make the effect of the down payment easy to see. Real fees, taxes, insurance, loan terms and required deposits will differ.
Every row assumes 5% down; $6,000 in closing fees; $3,000 in prepaids and escrow deposits; an $800 inspection and $700 appraisal paid before closing; a $5,000 earnest-money deposit credited at closing; and $2,500 in seller credits that the lender permits toward the modeled closing costs. There is no assistance loan in these examples.
The broader plan adds $2,000 for moving and $8,000 kept as a reserve. Those are placeholders, not a recommended reserve for every household. No mortgage rate or monthly payment is assumed.
Illustrative purchase cash, plus a separate moving and reserve plan| Price | 5% down | Paid early* | Still due at closing | Total purchase cash | With moving + reserve |
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| $350,000 | $17,500 | $6,500 | $19,000 | $25,500 | $35,500 |
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| $500,000 | $25,000 | $6,500 | $26,500 | $33,000 | $43,000 |
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| $650,000 | $32,500 | $6,500 | $34,000 | $40,500 | $50,500 |
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*Paid early includes the $5,000 earnest deposit plus $1,500 in inspection and appraisal costs. The deposit is credited later; it is not added twice.
The $500,000 example, step by step
$25,000 down + $6,000 fees + $3,000 prepaids − $2,500 permitted credits = $31,500 before applying the deposit. Subtract the $5,000 deposit and $26,500 remains due at closing. Add the deposit and $1,500 of separately paid inspection/appraisal costs: total purchase cash is $33,000. Adding moving and the retained reserve makes the broader plan $43,000.
Can seller credits reduce what I need?
They can help with eligible costs if the seller agrees and your loan permits them. Ask the lender which expenses qualify, what limits apply, and whether all the requested credit can actually be used. For example, Fannie Mae limits interested-party contributions and does not allow them to fund the buyer’s down payment or reserves. Your loan’s rules need separate confirmation.
Our planner caps modeled credits at closing fees plus prepaids. That is a budgeting safeguard, not approval under any loan program. If the offer includes credits, have the lender and escrow explain how they will appear in your actual closing figures. Do not assume unused credit becomes cash back.
Does down-payment assistance mean free money?
Sometimes assistance has repayment obligations. It may be a separate loan with its own interest, occupancy rules and triggers involving sale, refinance or other changes. Deferred payments do not necessarily mean the balance is forgiven. Read the specific program documents, including the Washington State Housing Finance Commission’s Home Advantage manual when that program applies.
Availability, participating lenders, eligibility and funding can change. Ask a participating lender to compare the entire loan package with and without assistance, including monthly cost and future repayment—not just how much cash it saves today.
Compare Washington buyer programs and financing questions →What should I do before writing an offer?
Get a written estimate tied to the price range and loan you are considering. Then make a short timeline of when each payment is due. If you are buying an older home, adding a septic or well investigation, or planning immediate repairs, use actual specialist quotes rather than assuming a basic inspection covers everything.
- Ask the lender for down payment, itemized fees, prepaids, deposit treatment and credit limits.
- Get inspection and any specialist quotes; clarify appraisal payment timing.
- Review earnest-money deadlines and the contract’s conditions for keeping or returning the deposit.
- Price the move and necessary early work, then choose a reserve that fits your household.
- Compare the final Closing Disclosure with the Loan Estimate and ask about changes before signing.
