Mortgage Setup - Down payment question

I've managed to set up my loan correctly for my new home, however I'm
curious how you allocate the big chunk of money that goes to closing costs
and to the down payment. Does anyone have experience in this area? Right
now I have a wire transfer for thousands of dollars to the Title company
that I do not know how to allocate.

I guess I could take down the initial value of my house and then transfer
the wired amount into my home's asset account to get it up to the right
value, but that doesn't sound like the ideal way.

Anyone out there know the answer?

Thanks!

Richard
Sat Aug 02 16:55:17 CDT 2003

Actually, that is the right idea!

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"Jenn Cumberland" <jenn@thecumberlands.com> wrote in message
news:%23hFJzFTWDHA.1984@TK2MSFTNGP11.phx.gbl...
> I've managed to set up my loan correctly for my new home, however I'm
> curious how you allocate the big chunk of money that goes to closing costs
> and to the down payment. Does anyone have experience in this area? Right
> now I have a wire transfer for thousands of dollars to the Title company
> that I do not know how to allocate.
>
> I guess I could take down the initial value of my house and then transfer
> the wired amount into my home's asset account to get it up to the right
> value, but that doesn't sound like the ideal way.
>
> Anyone out there know the answer?
>
> Thanks!
>
>

Dick
Sat Aug 02 17:22:59 CDT 2003

I don't know that there is one right answer, but I think you are on the
right track. Depending on how complicated you want to make it, you can also
go right down the settlement sheet and expense all of the costs
(Insurance:Title, Interest Expense:Mortgage for the prepaid amount, etc.)
and then do as you propose with the actual down payment amount. This better
reflects the expenses involved.

"Jenn Cumberland" <jenn@thecumberlands.com> wrote in message
news:%23hFJzFTWDHA.1984@TK2MSFTNGP11.phx.gbl...
> I've managed to set up my loan correctly for my new home, however I'm
> curious how you allocate the big chunk of money that goes to closing costs
> and to the down payment. Does anyone have experience in this area? Right
> now I have a wire transfer for thousands of dollars to the Title company
> that I do not know how to allocate.
>
> I guess I could take down the initial value of my house and then transfer
> the wired amount into my home's asset account to get it up to the right
> value, but that doesn't sound like the ideal way.
>
> Anyone out there know the answer?