The down payment is due at closing, which happens after your offer is accepted and your loan is approved
The down payment itself is not due when you make an offer on a house. It becomes due at closing — the final meeting where you sign all the paperwork, get the keys, and officially own the property. Closing typically happens 30 to 45 days after your offer is accepted, though it can be sooner or later depending on what you and the seller agree to.
Before closing, you will make a smaller payment called earnest money (usually 1 to 3 percent of the purchase price) to show the seller you are serious. This happens within a few days of your offer being accepted and goes into an escrow account — a neutral third party holds it until closing. If the deal falls through for reasons within your control, you may lose this money. If it falls through because the inspection finds major problems or the appraisal comes in too low, you typically get it back.
At closing itself, you bring the full down payment amount in the form of a cashier's check, wire transfer, or bank transfer. Your lender will tell you the exact amount and the important date — usually two to three business days before the closing date.
Key Takeaways
- Earnest money (a smaller deposit showing good faith) is due within days of your offer being accepted.
- Your full down payment is due at closing, which typically happens 30 to 45 days after your offer is accepted.
- Your lender will tell you the exact down payment amount and the important date for payment before closing.
- The down payment must arrive as a cashier's check, wire transfer, or bank transfer — not cash or personal check.
- If your loan is denied or the appraisal is too low, you may be able to renegotiate the down payment amount with the seller.
What happens between your offer and closing
Once your offer is accepted, several things happen in sequence. You will order a home inspection (usually within 7 to 10 days), and the lender will order an appraisal to confirm the house is worth what you are paying. During this time, your lender is also verifying your income, credit, and employment — they want to be certain you can actually borrow the money.
If the appraisal comes in lower than the purchase price, you have choices: pay the difference out of pocket, renegotiate the price with the seller, or walk away (and get your earnest money back). If your loan is denied during this period, the earnest money is returned to you. This is why the earnest money is held in escrow — it protects both you and the seller.
How much you need to bring to closing
Your down payment is not the only money you bring to closing. You will also pay closing costs — fees for the loan origination, appraisal, title search, homeowners insurance, property taxes, and other services. Closing costs typically run 2 to 5 percent of the purchase price, though this varies by location and lender.
Your lender will send you a Closing Disclosure document at least three business days before closing. This document shows your down payment amount, all closing costs, your monthly payment, and the total amount you are borrowing. Read it carefully and ask questions if anything looks wrong — you have the right to see this before you show up to sign.
The total amount of cash you need at closing is your down payment plus your closing costs. Some sellers will agree to pay part of the closing costs as part of the negotiation, which reduces what you have to bring.
What to do if you do not have the full amount by closing
If you realize you cannot bring the full down payment and closing costs by the closing date, tell your lender when ready. Do not wait until closing day. Your options depend on how much you are short and how much time is left.
You might be able to ask the seller to cover more of the closing costs, which reduces your cash requirement. You might be able to delay closing by a few weeks to save more money. You might be able to increase your loan amount if your lender will approve it, though this means borrowing more and paying more interest over time. In some cases, a family member can give you a gift to cover the shortfall, though the lender will require a signed letter stating it is a gift, not a loan you have to repay.
What you cannot do is show up to closing without the money and expect to proceed. The closing will not happen until the funds are there.
Wiring money safely to closing
Your lender will tell you where to send the down payment and closing costs — usually to an escrow company or title company. They will provide wire instructions with a specific account number and routing number. Before you wire any money, call the title company or escrow company directly using the phone number on their official website to confirm the wire instructions are correct. Do not use a phone number from an email — scammers sometimes intercept closing emails and change the wire instructions to steal the money.
Wire the money from your own bank account, not from a friend's or family member's account. If you are using a gift from a family member, they should wire it to you first, and then you wire it to closing. This creates a clear paper trail that satisfies the lender's requirements.
If the deal falls apart before closing
If you back out of the purchase for a reason not covered by your contract (such as you straightforward changed your mind), you will lose your earnest money. If the deal falls apart because the inspection found major problems, the appraisal was too low, or your loan was denied, you typically get the earnest money back.
Your purchase contract spells out which reasons allow you to walk away without penalty. Read this section carefully before you sign the offer. If you are unsure what it means, ask a real estate agent or attorney to explain it.
Frequently Asked Questions
Can I pay my down payment in installments before closing?
No. Your down payment is due in full at closing. The only money you pay before closing is earnest money, which is a small deposit (usually 1 to 3 percent of the purchase price) made within days of your offer being accepted.
What if I do not have the earnest money right away?
Talk to your real estate agent or the seller's agent. In some cases, the important date can be extended by a few days. If you cannot come up with earnest money at all, your offer will likely be rejected because the seller will see it as a sign you are not serious about buying.
Do I have to bring a cashier's check to closing, or can I wire the money?
Most closings now use wire transfers because they are safer and faster. Your lender will tell you how they want the money delivered. Always confirm wire instructions by calling the title company directly — do not rely on email alone.
What happens to my earnest money at closing?
Your earnest money is credited toward your down payment. If your down payment is 20 percent and your earnest money was 2 percent, you bring the remaining 18 percent at closing.
Can the seller ask me to increase my down payment after I make an offer?
No. The down payment amount is part of your written offer and becomes part of the contract once the seller accepts it. The seller cannot change it unless you both agree in writing to a new contract.