Blog – CTeBockhorst's Blog

Understanding “Cash to Close” in Your Home Buying Journey

July 16, 2026 by Coleen TeBockhorst

If you’ve received your Closing Disclosure from your lender, congratulations! You’re almost at the finish line of your home buying journey, ready to celebrate with keys in hand. The Closing Disclosure, or CD, is provided at least three business days before your closing appointment and details your loan terms, projected monthly payments, and the much-discussed “cash to close.” But what exactly is “cash to close,” and how is it calculated?

What is “Cash to Close”?

“Cash to close” is the total amount you’ll need to bring to your closing appointment to finalize your home purchase. It includes your down payment and closing costs, which are necessary to officially transfer ownership of the property to you. Each fee has a specific purpose, ensuring the legal and financial security of both you and the lender.

Breaking Down Closing Costs

Closing costs are part of the cash to close and cover a range of legal, administrative, and logistical fees associated with your mortgage. Here’s a look at some common components:

Appraisal Fees: Typically paid by the buyer, this fee covers the cost of determining the fair market value of the home.
Attorney Fees: These include charges for preparing closing documents and conducting a title search.
Title Insurance: Provides protection if a third party claims ownership of the property.
Application & Origination Fees: Cover lender costs for processing and underwriting your loan.
Mortgage Insurance: Required for certain loans, this protects the lender if you default.
Funding Fees: Charged for specific loan types like FHA, USDA, or VA loans.
Pest Inspection Fees: Usually for termite inspections, particularly in certain areas or on specific property types.

Each of these fees will be listed individually on your CD and contribute to your total cash to close amount. Some lenders may allow you to roll certain costs into your loan, but this varies and depends on factors like loan type and lender policies.

Earnest Money Deposit (EMD) and Down Payment

If you made an earnest money deposit when you agreed to purchase the home, this amount is held in escrow and typically applied toward your closing costs. The down payment, a major part of the cash to close, is based on your loan type and the amount you agreed to put down, which can range from as little as 0% to as much as 20% or more of the purchase price. Your lender will review and confirm these details well before closing.

Payment Options for Closing Costs

Lenders usually require a certified payment method. Here are a few options to consider:

Cashier’s Check: The most common form, which you can get from your bank. You’ll need the exact amount and payee information.
Certified Check: Another bank-issued option, ensuring funds are available and verified.
Wire Transfer: Convenient but requires advanced planning. Wire transfers can take a few days and should be carefully verified to avoid fraud.

Note: Cash, personal checks, and credit/debit cards aren’t accepted due to the high amounts and to ensure clear documentation of funds.

Verify all details on your Closing Disclosure and double-check your payment method with your lender. By staying informed and preparing early, you can ensure a seamless transition to homeownership.

Understanding “cash to close” can alleviate some of the uncertainty around finalizing your mortgage and help you walk confidently into your new home!

Common Title Issues That Can Delay Your Home Closing

July 15, 2026 by Coleen TeBockhorst

When you’re in the final stages of buying a new home, it’s easy to assume that everything will go smoothly from here on out. However, one of the most common obstacles that can arise in this final stage of the process is title issues. If not addressed, these can delay your closing or even derail the sale.

A “cloud on title” or “title defect” refers to any issue that prevents a property’s title from being transferred smoothly from the seller to the buyer. Title defects often surface during the title search, a standard process that ensures the property’s title is clear and ready for transfer. The most common title defects include liens, easements, or prior claims on the property, any of which can delay or prevent a sale from going through.

Understanding the Title and Its Importance

When you own a property’s title, you have the legal right to control what happens to the property, whether that’s living on it, selling it, or leasing it out. A successful home purchase includes the transfer of title from the seller to the buyer, typically through the closing process, where the buyer receives both the title and the deed.

However, property rights can be restricted due to zoning laws, easements, or other legal regulations, which is why conducting a title search is so important. This search helps reveal any underlying issues that could prevent the smooth transfer of the title.

Can You Waive a Title Search?

In most cases, waiving a title search is not recommended, especially if you’re using a mortgage to finance your purchase. Title searches are designed to reveal hidden problems that could affect the ownership of the property. Let’s look at two scenarios:

When Buying with a Mortgage: Mortgage lenders require a title search to ensure the property has a clear title. Skipping this step could result in buying a home from someone who doesn’t legally own it, jeopardizing your ability to own the property.

When Paying Cash: If you’re paying cash, you technically have the option to waive the title search, but it’s still a good idea to proceed with one. If the seller has no legal rights to the property, you could be left with no ownership and no way to recover your funds.

Common Causes of Title Defects

Liens: Liens are legal claims against a property for unpaid debts. These debts could be related to unpaid property taxes, unpaid contractor bills (mechanic’s liens), or even unpaid Homeowner’s Association (HOA) fees. When you purchase a home with a lien on it, you may inherit responsibility for that debt.

Tax Liens and Delinquent Tax Bills: If a homeowner fails to pay their taxes, the government can place a lien on the property. Resolving this issue may involve proving that taxes have been paid or paying them off at closing.

Easements: An easement gives someone else the legal right to use part of your property, such as for utilities. While most easements are harmless, some can limit how you use your property and may not be immediately disclosed.

Mechanic’s Liens: Contractors who weren’t paid for their work can file a mechanic’s lien, which must be resolved before the property can be sold. This lien is attached to the property, not the seller, meaning the buyer could become responsible for the unpaid debt.

Probate and Ownership Issues: If a seller passes away before the closing, you may face delays due to probate issues. Similarly, if a property is owned by multiple parties or is part of a living trust, this can complicate the transfer of the title.

What Should You Do If a Title Defect Is Found?

While most title defects can be resolved, they usually cause delays. The best course of action is to consult with a real estate attorney. They can help you navigate the process and make sure that the title is cleared before you move forward with the purchase. It’s important to address any red flags early, as ignoring them could leave you with costly debts or legal issues down the road.

A smooth closing process is something every homebuyer hopes for, but title issues can create unexpected roadblocks. By being aware of common title defects and working with professionals to resolve them, you can help ensure that your closing goes as planned. Remember, no lender will approve a mortgage for a property with unresolved title issues, so it’s crucial to clear any problems before proceeding with the purchase.

Understanding the Financial Power of Mortgage Points

July 14, 2026 by Coleen TeBockhorst

In the world of home financing, mortgage points are a powerful yet often misunderstood tool that can significantly impact your long-term financial outlook. Whether you’re purchasing a home or refinancing, understanding how these points work can help you make more informed decisions that align with your financial goals.

What Are Mortgage Points?

Mortgage points, also known as discount points, are a way for borrowers to reduce the interest rate on their loan by making an upfront payment. Each point typically costs 1% of the total loan amount and can reduce your interest rate by around 0.25%. The idea is simple: pay more upfront to save on interest over the life of the loan.

Types of Mortgage Points: Discount vs. Origination

There are two main types of points to be aware of:

Discount Points
These points allow borrowers to lower their interest rate by making an upfront payment. The more discount points you buy, the lower your interest rate, which can lead to significant savings on your monthly mortgage payment. This option is most beneficial if you plan to stay in your home for a long period, as the upfront cost of purchasing points will be recouped through the interest savings over time.
Origination Points
Origination points, on the other hand, are fees paid to the lender for processing the loan. These points don’t reduce your interest rate but are part of the overall cost of obtaining the loan.

When Do Mortgage Points Make Sense?

Deciding whether to purchase mortgage points depends on several factors. Here are a few key considerations:

Long-Term Homeownership
If you plan to stay in your home for several years, buying discount points can make financial sense. The longer you stay, the more you benefit from the reduced interest rate. For example, if you’re in your home for 10 or more years, the savings from a lower rate can easily outweigh the initial cost of the points.
Upfront Investment
Purchasing mortgage points requires an upfront investment. It’s essential to evaluate whether you have the funds available to cover these costs. If you can comfortably afford the upfront expense, the savings over the life of the loan may be worth it.
Interest Rate Environment
The current interest rate landscape plays a role in determining whether buying points is a good move. In a low-interest-rate market, purchasing points to further lower your rate may offer significant savings. However, if rates are already low, the additional reduction may not provide as much benefit.
Loan Comparison
It’s important to compare offers from different lenders. Some lenders may offer more favorable terms on points, making it easier to achieve the desired interest rate reduction. By analyzing multiple loan offers, you can determine the best combination of points and interest rates for your situation

By understanding the role of mortgage points, you can tailor your financing strategy to suit your financial goals. Whether you’re considering purchasing or refinancing, the decision to buy points should align with your long-term homeownership plans, your ability to invest upfront, and the current interest rate market. By taking these factors into account, you’ll be better equipped to make informed decisions that pave the way to a secure financial future.

What’s Ahead For Mortgage Rates This Week – July 13th, 2026

July 13, 2026 by Coleen TeBockhorst

The Trade Balance has offered little new insight, as it has largely returned to levels seen prior to the earlier period of unstable tariff policies. Consumer Credit had been trending upward nearly every month; however, this latest report breaks that pattern by showing a decline in consumer credit usage. Meanwhile, the Fed’s Minutes revealed nothing particularly substantial, instead reflecting a dovish stance and a willingness to maintain current interest rates for the foreseeable future.

Consumer Credit
Total US consumer credit fell by $0.18 billion in May 2026, following an upwardly revised $20.82 billion increase in April and missing market expectations for a $17.1 billion gain. Revolving credit, which includes credit card debt, declined to $1.34 trillion from $1.35 trillion, pointing to weaker short-term consumer borrowing. Meanwhile, non-revolving credit, which includes auto and student loans, increased to $3.81 trillion from $3.80 trillion. Overall consumer credit was unchanged on an annualized, seasonally adjusted basis, as revolving credit contracted at a 4.7% annual rate while non-revolving credit grew at a 1.6% pace.

U.S. Trade Balance
The US trade deficit widened sharply to $77.6 billion in May 2026 from a revised $54.6 billion in April, broadly in line with market expectations of a $78.5 billion shortfall. The gap was the largest since March 2025, as imports climbed 3.3% to $395.3 billion, their highest level in more than a year. The increase was driven primarily by higher purchases of consumer goods, particularly pharmaceutical preparations and cell phones, as well as crude oil and passenger cars.

Primary Mortgage Market Survey Index

15-Year FRM rates saw an increase of 0.03%, bringing the current rate to 5.82%.
30-Year FRM rates saw an increase of 0.06%, bringing the current rate to 6.49%.

MND Rate Index

30-Year FHA rates saw an increase of 0.04%, with current rate at 6.21%.
30-Year VA rates saw an increase of 0.04%, with current rate at 6.23%.

Jobless Claims
Initial Claims were reported to be 215,000 compared to the expected claims of 218,000. The previous landed at 217,000.

What’s Ahead
Next week brings the release of the Consumer Price Index (CPI) and Producer Price Index (PPI) inflation reports. Although inflation remains an important indicator, these reports are not expected to significantly alter the Federal Reserve’s current stance on interest rates.

Why Your Spending Habits Matter More Than Your Income When Buying a Home

July 10, 2026 by Coleen TeBockhorst

Many people believe that earning a higher income automatically makes buying a home easier. While income certainly plays an important role, it is only part of the equation. How you manage the money you earn can have an even greater impact on your ability to qualify for a mortgage and comfortably afford homeownership. Developing healthy spending habits before you begin your home search can put you in a much stronger financial position.

Create a Realistic Monthly Budget
Understanding where your money goes each month is one of the best ways to prepare for homeownership. Review your monthly income and expenses, including subscriptions, dining out, entertainment, and discretionary spending. Identifying areas where you can reduce unnecessary expenses may help you save more for your down payment, closing costs, and future home expenses.

Keep Your Debt Under Control
Mortgage lenders consider your debt-to-income ratio when evaluating your loan application. Even if you have a strong income, carrying large credit card balances or other monthly debt payments can affect how much home you can comfortably afford. Paying down debt before purchasing a home may improve your financial profile and provide greater flexibility in your monthly budget.

Build Healthy Financial Habits
Small financial decisions made consistently over time often have a greater impact than occasional large savings. Setting aside money each month, paying bills on time, and avoiding unnecessary purchases can strengthen your financial foundation. These habits not only prepare you for buying a home but also make it easier to manage the ongoing responsibilities of homeownership.

Think Beyond the Mortgage Payment
Owning a home involves more than making a monthly mortgage payment. Utilities, homeowners insurance, maintenance, and unexpected repairs should all be part of your financial plan. Buyers who develop strong budgeting habits before purchasing a home are often better prepared to handle these additional expenses without feeling overwhelmed.

Work With Your Mortgage Professional
A mortgage professional can help you understand how your overall financial picture affects your home buying options. Together, you can review your budget, discuss ways to strengthen your financial position, and determine a comfortable price range that supports your long-term goals.

Buying a home is not simply about how much money you earn. It is about how well you manage your finances before and after closing. By developing smart spending habits today, you can build the confidence and stability needed to enjoy homeownership for years to come.

How Much Emergency Savings Should You Keep After Buying a Home?

July 9, 2026 by Coleen TeBockhorst

Buying a home is an exciting milestone, but your financial planning should not stop once you receive the keys. While it is tempting to put every available dollar toward your down payment or decorating your new space, maintaining an emergency savings fund is one of the smartest decisions you can make. Having money set aside for unexpected expenses can help you enjoy homeownership with greater confidence and less financial stress.

Why Emergency Savings Matter
Owning a home comes with responsibilities that renters often do not experience. A water heater can stop working, an appliance may need replacing, or a storm could cause unexpected damage. Even smaller repairs can quickly add up. An emergency fund allows you to handle these situations without relying on credit cards or disrupting your monthly budget.

How Much Should You Save?
While every homeowner’s financial situation is different, many financial experts recommend having at least three to six months of living expenses in an emergency fund. If purchasing a home reduces your savings, make rebuilding that fund one of your first financial goals after closing. Even setting aside a small amount each month can help your savings grow over time.

Start Small and Stay Consistent
Building an emergency fund does not have to happen overnight. Set up automatic transfers into a dedicated savings account and treat those contributions like any other monthly bill. Consistency is often more important than the amount you save each month. As your income grows or your expenses change, you can continue increasing your savings.

Separate Emergency Savings From Other Goals
It is important to keep your emergency fund separate from money you are saving for vacations, home upgrades, or holiday shopping. Knowing your emergency savings is reserved for true unexpected expenses can provide peace of mind and help you avoid making emotional financial decisions when surprises happen.

Talk With Your Mortgage Professional
Your mortgage professional can help you determine a comfortable home purchase budget that allows you to maintain healthy savings after closing. Buying a home should strengthen your financial future, not leave you feeling stretched too thin. Planning ahead can help you enjoy your new home while staying prepared for life’s unexpected moments.

A home is one of the biggest investments you will ever make. Protecting that investment starts with protecting your financial well-being. Building and maintaining an emergency savings fund gives you the flexibility to handle unexpected expenses while enjoying everything homeownership has to offer.

How to Build a Home Buying Budget That Still Lets You Enjoy Life

July 8, 2026 by Coleen TeBockhorst

Buying a home is an exciting milestone, but it should not mean giving up everything you enjoy. A well-planned budget helps you become a homeowner while still making room for vacations, hobbies, family outings, and the occasional dinner out. The goal is to create a financial plan that supports your lifestyle instead of limiting it.

Start With Your Monthly Income
Before shopping for a home, take an honest look at your monthly income and expenses. List everything from utilities and groceries to streaming services and gym memberships. Knowing where your money goes each month gives you a clearer picture of what you can comfortably afford without stretching your finances too thin.

Leave Room for Everyday Living
Many buyers focus only on what they can qualify for, but qualifying for a certain loan amount does not always mean it is the best choice. Think about the activities that are important to you, whether it is traveling, dining out, saving for retirement, or supporting your children’s activities. Your housing payment should allow you to continue enjoying the life you have worked hard to build.

Plan for Unexpected Expenses
Homeownership comes with expenses that renters may not experience. Appliances eventually need replacing, small repairs arise, and seasonal maintenance becomes part of owning a home. Setting aside money each month for these costs can help you avoid financial stress when unexpected repairs appear.

Build Savings Into Your Budget
A healthy budget includes more than monthly bills. Continue contributing to your emergency fund and long-term savings after purchasing your home. Maintaining financial flexibility provides peace of mind and helps you prepare for life’s unexpected changes without relying on credit cards or loans.

Work With a Mortgage Professional
A mortgage professional can help you understand different loan options and estimate monthly housing costs beyond just the mortgage payment. Property taxes, homeowners insurance, and other expenses all play a role in determining what fits comfortably within your budget. Together, you can find a payment that supports both your homeownership goals and your overall financial well-being.

Owning a home should be a source of pride and stability, not financial worry. By creating a realistic budget that balances your housing costs with the lifestyle you enjoy, you can feel confident that your new home supports both your present and your future.

Should You Buy a Home Before Your Lease Ends?

July 7, 2026 by Coleen TeBockhorst

Buying a home before your lease expires may seem like paying for two places at once, but in many cases it can actually make the transition smoother and less stressful. Every situation is different, and understanding your options can help you decide whether overlapping your lease and mortgage is the right move.

Consider Your Timeline
The home buying process does not always follow a predictable schedule. A closing date can move, repairs may take longer than expected, or your moving plans could change. Having a little overlap between your lease and your new home gives you flexibility instead of feeling rushed.

Compare the Financial Impact
Paying rent and a mortgage for a short period may seem expensive, but it is important to compare that cost with the alternatives. Breaking a lease, paying for temporary housing, or rushing into a decision because of a deadline could end up costing even more. Review your lease agreement carefully and calculate all of your options before deciding.

Enjoy a Less Stressful Move
One of the biggest advantages of overlapping your lease is the ability to move at your own pace. Instead of packing everything into one exhausting weekend, you can gradually move your belongings, clean your rental thoroughly, and settle into your new home without unnecessary pressure.

Give Yourself Time to Prepare Your New Home
Many homeowners want to paint, replace flooring, deep clean, or complete small repairs before moving furniture inside. Having an empty home for a short time allows you to complete those projects much more easily than after you have already unpacked.

Talk With Your Mortgage Professional
Every buyer’s financial situation is unique. A mortgage professional can help you understand how your monthly housing expenses fit within your budget and whether purchasing before your lease ends makes financial sense. With the right planning, a brief overlap can provide convenience, flexibility, and peace of mind during one of life’s biggest transitions.

Buying a home is exciting, and careful timing can make the experience much more enjoyable. By weighing the costs and benefits ahead of time, you can move into your new home with greater confidence and fewer surprises.

What’s Ahead For Mortgage Rates This Week – July 6th, 2026

July 6, 2026 by Coleen TeBockhorst

Unemployment data has shown some rather interesting statistics, with the lowest unemployment rates in the last 14 months being reported. Looking closer at the statistics shows that the unemployment rate hasn’t just dropped due to more people finding work, but also because a significant number of people have stopped looking for work, causing the numbers to appear more favorable.

Among analysts, this is a pretty standout example, and currently, the Federal Reserve has made no indication that it plans to change its policies on interest rates, with many members of the board still favoring increasing rates again. Hourly wages have also seen a modest increase, but this growth has been overshadowed by the increase in inflation for quite some time.

Unemployment Report
The unemployment rate fell in June to a 14-month low of 4.2%. Good news, right? Yes and no. The biggest reason the jobless rate fell is that 720,000 people dropped out of the labor force. This is usually a bad sign, as it means people are too discouraged to look for work.

Consumer Confidence
Consumer Confidence Index rose 0.6 point to 91.2 in June, a figure that is still below its year-ago reading of 95.2. Consumer attitudes worsened after the Iran war caused oil and gas prices to spike, accelerating inflation and causing Americans’ inflation-adjusted incomes to decline. Before the pandemic, the index regularly topped 120.

Primary Mortgage Market Survey Index

15-Year FRM rates saw a decrease of -0.05%, bringing the current rate to 5.79%.
30-Year FRM rates saw a decrease of -0.06%, bringing the current rate to 6.43%.

MND Rate Index

30-Year FHA rates saw an increase of 0.07%, with current rate at 6.17%.
30-Year VA rates saw an increase of 0.07%, with current rate at 6.19%.

Jobless Claims
Initial Claims were reported to be 215,000 compared to the expected claims of 220,000. The previous week landed at 216,000.

What’s Ahead
A very light week lies ahead, with key economic updates including the U.S. Trade Balance and Consumer Credit reports, along with the Fed’s FOMC Meeting Minutes.

Why Small Financial Changes Can Delay Your Closing

July 3, 2026 by Coleen TeBockhorst

As closing day approaches, many homebuyers assume the mortgage process is nearly complete. While that is often true, lenders may continue reviewing your financial information until the final approval is issued. Even small changes to your finances can create new questions, require additional documentation, and potentially delay your closing. Knowing what to avoid can help keep your home purchase on track.

New Credit Can Create New Questions
Opening a new credit card, financing furniture, or applying for a store account may seem harmless, but new credit can affect your mortgage file. Lenders may need to review the new account, calculate the monthly payment, and determine whether it changes your debt-to-income ratio. Waiting until after closing is usually the safer choice.

Large Deposits May Need Documentation
If a large deposit appears in your bank account, your lender may ask where the money came from. This is not unusual, but it can slow the process if records are not available. Funds from gifts, bonuses, transfers, or account withdrawals may need a clear paper trail before they can be accepted.

Changing Jobs Can Affect Timing
Even if a new job is a positive career move, changing employment before closing can require additional review. Lenders may need to verify your new position, confirm income details, and request updated documentation. If you are considering an employment change, speak with your mortgage professional first.

Moving Money Between Accounts Can Add Steps
Transferring funds between accounts may seem simple, but it can create additional documentation requirements. Lenders need to verify the source and movement of funds used for closing. Keeping your accounts consistent can make it easier to confirm available assets.

Small Choices Can Have Big Timing Impacts
Most financial changes do not automatically stop a mortgage approval, but they can add time to the review process. When closing deadlines are approaching, even a small delay can create stress for buyers, sellers, agents, and everyone involved in the transaction.

The safest approach is to keep your financial picture steady until after closing. Before opening credit, making large purchases, changing jobs, or moving money, contact your mortgage professional. A quick conversation can help you avoid preventable delays and get to closing day with greater confidence.

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