LESSON 2 OF 6

Give your cash three jobs

Cash to buy. Cash for costs. Cash that stays yours.

Private educational draft. Company review pending. This class does not provide a qualifying education certificate.

A down payment is only one part of the purchase cash. Your closing figures may also include loan and settlement costs, prepaid expenses and an initial escrow deposit. Deposits already paid and applicable credits can reduce what remains due.

Draw three boxes: money used for the purchase, other closing amounts, and cash remaining afterward. Ask which quoted total includes which box. Do not count earnest money twice or assume a credit can pay any expense without limits.

MAKE IT CONCRETE

Illustration: $50,000 available minus $35,000 total cash used for the purchase leaves $15,000. That remaining cash has a job too.

Your turn

Use the downloadable workbook to record estimated cash used and the amount you want left. Confirm final figures on the Closing Disclosure.

Open my cash planning workbook Download the workbook

Check your understanding

Is the down payment always the full amount you need at closing?YesOnly if the rate is fixedNo, other costs, deposits and credits affect cash to close

Completion stays in this browser. No financial information is collected.

Learning reference: CFPB consumer education. Checked September 16, 2026. Examples are hypothetical.