Cash to close is the total amount of money a borrower needs to bring to closing. It may include the down payment, closing costs, prepaid expenses, and other adjustments.
Cash to close vs. down payment
Your down payment is only one part of cash to close. Cash to close may also include lender fees, title fees, prepaid taxes, insurance, escrow deposits, and other transaction-related costs.
What may be included?
- Down payment
- Closing costs
- Prepaid interest
- Property tax deposits
- Homeowners insurance
- Escrow deposits
- Title and settlement fees
- Recording fees
- Adjustments and credits
Trying to understand how much money you may need to buy?
Why cash to close can change
Cash to close may change as the loan moves forward. Changes can happen because of updated taxes, insurance, closing date, credits, rate lock terms, seller concessions, or final closing adjustments.
Where to find cash to close
Your Loan Estimate will provide an estimated cash to close. Your Closing Disclosure will show the final amount before closing. Review both documents carefully and ask questions if anything is unclear.
Tips to prepare
- Keep funds in a verifiable account
- Avoid large unexplained deposits
- Ask about acceptable payment methods
- Review closing documents carefully
- Keep extra funds available for moving and setup costs