Cash to Close
The final dollar amount you need to wire or bring to closing.
Definition
Cash to close is the total amount of money you must bring to the closing table after subtracting your loan amount, deposits, credits, and prepaid items.
Category: Closing
What cash to close includes
Cash to close usually includes your down payment, lender fees, title and escrow charges, prepaid taxes and insurance, and any remaining balance due after earnest money and lender credits are applied.
Why buyers get surprised by it
Many people confuse cash to close with closing costs. Closing costs are only one part of the number. Your final cash needed can be much higher because it also includes the down payment and prepaids.
How to keep it under control
Review the Loan Estimate early, ask whether seller credits are possible, and verify that the transfer amount on your Closing Disclosure matches the wire instructions before funds are sent.
Related glossary terms
- Closing Costs - The collection of fees charged to finalize your mortgage and transfer ownership.
- Loan Estimate - The early disclosure that outlines a mortgage offer's rate, payment, and fees.
Related loan programs
- Conventional Loans - Conventional loans aren't backed by a government agency, follow Fannie Mae and Freddie Mac guidelines, and reward strong credit with the lowest rates and most flexible terms available.
- FHA Loans - FHA loans are insured by the Federal Housing Administration and let you buy with as little as 3.5% down and a 580 credit score, making them a top choice for first-time buyers and credit rebuilders.
- VA Loans - VA loans are guaranteed by the Department of Veterans Affairs and let eligible veterans, active-duty service members, and surviving spouses buy with zero down payment and no monthly mortgage insurance.