Why buying a home is more than just “having some money saved.”
So you’ve decided to buy a house—congrats! 🏡
You’ve been saving like crazy, skipping lattes, selling random stuff on Facebook Marketplace, and maybe even putting off that beach trip. But now someone hits you with:
“You’ll need a down payment and closing costs.”
Wait… what now?
Don’t worry—at Johns Creek Mortgage, we’re all about breaking things down into normal-human language.
💰 Down Payment = Skin in the Game
Your down payment is a chunk of the home’s price that you pay upfront. It shows the lender you’re serious and helps reduce the amount you borrow.
Typical down payments:
- FHA Loans: As low as 3.5%
- Conventional Loans: Often 3%–20%
- VA/USDA Loans: Sometimes 0% down (yes, really!)
Example:
If your dream home costs $300,000 and you put 5% down, that’s $15,000.
This money goes toward the home, not to the lender—it’s equity from day one. 💪
💸 Closing Costs = The “Fine Print” Money
Closing costs are all the extra fees that come with finalizing your mortgage and transferring ownership. They cover things like:
- Appraisal & inspection
- Title search & homeowners insurance
- Lender fees (hi, that’s us 👋)
- Taxes & prepaid insurance
These typically add up to 2–5% of the home’s purchase price—on top of your down payment.
So yes, you may need both a suitcase and a calculator.
✨ The Easy Breakdown:
| What It’s For | Down Payment | Closing Costs |
| Goes toward your loan | ✅ Yes | ❌ Nope |
| Paid at closing | ✅ Yes | ✅ Yes |
| Amount can vary | ✅ Based on loan/home price | ✅ Based on services/taxes/fees |
| Can be financed? | ❌ Not usually | 🔄 Sometimes (depends on loan/program) |
💡 Pro Tip:
Sometimes, sellers can help cover your closing costs—or we can structure your loan to help minimize out-of-pocket expenses. (We are magical like that.)
🎯 Bottom Line:
Your down payment gets you in the game.
Your closing costs make the game official.
At Johns Creek Mortgage, we’ll help you understand both—and plan for them—so there are zero surprises at the closing table (except maybe how happy you are).
Have questions? We’ve got answers (and coffee). Let’s make your homeownership journey smooth, smart, and maybe even a little fun.
Natalie Postma
Loan Consultant
NMLS ID #2212433
FL Licensee # LO118835
GA Licensee # 2212433
IN Licensee # 59374
(678) 502-0245 | phone
(317) 502-7097 | mobile
(678) 326-4709 | fax
npostma@johnscreekmortgage.com
www.johnscreekmortgage.com
NMLS #2320634