What Is Cash to Close?
Cash to Close: The total amount you bring to closing: down payment plus closing costs, minus deposits and credits.
Cash to close is the money you must bring to the closing table. It's the most important number to save for, because it's more than the down payment.
How it's calculated
Cash to close = down payment + closing costs + prepaid items − earnest money already paid − seller credits − lender credits.
Example
| Amount | |
|---|---|
| Down payment (5% of $400,000) | $20,000 |
| Closing costs | $9,500 |
| Prepaid items and escrow | $3,500 |
| Earnest money paid | −$8,000 |
| Seller credit | −$5,000 |
| Cash to close | $20,000 |
Where you'll see it
Cash to close is estimated on your Loan Estimate and finalized on your Closing Disclosure. Escrow confirms the exact wire amount a day or two before closing.
Good to know
Unbeatable shows estimated cash to close for each loan program on each home, so you can compare before you offer.