Often times I am asked, “What is my downpayment?” as a question to how much money one is going to need when purchasing a home. Downpayment and funds to close are not the same. Funds to close is the product of three things; your downpayment, if one is required for the loan program you’re using, your closing costs and your prepaids which include taxes, homeowners insurance, prepaid interest, etc. Those are the three things necessary to understand funds to close and a mortgage transaction. Ask us how.