What Is Cash to Close?
Cash to close is the total amount of money you need to bring to the closing table to finalize your home purchase. It includes your down payment, closing costs, prepaid items (like insurance and taxes), and any other fees — minus credits from the seller or lender.
Key Facts
- Cash to close = down payment + closing costs + prepaids − credits.
- It's different from closing costs alone — it includes your down payment.
- Your lender provides the exact amount on the Closing Disclosure (CD), three days before closing.
- You'll typically wire this amount — personal checks are usually not accepted for large sums.
- Ask your lender about seller credits or lender credits to reduce your cash to close.
Real-World Example
Home price: $650,000. Down payment (10%): $65,000. Closing costs: $12,000. Prepaids (taxes/insurance): $4,500. Seller credit: −$5,000. Your cash to close = $76,500.
Why It Matters
Knowing your total cash to close helps you prepare financially and avoid surprises at the last minute. Many buyers focus only on the down payment and forget about closing costs and prepaids — which can add $10,000 to $20,000 or more.
En Español
El efectivo para el cierre es la cantidad total de dinero que necesitas traer a la mesa de cierre para finalizar la compra de tu casa. Incluye tu enganche, costos de cierre, artículos prepagados (como seguro e impuestos) y cualquier otra tarifa, menos créditos del vendedor o prestamista.