If you’re on the path to purchasing a home, one of the last big steps is receiving your Closing Disclosure (CD) from your lender. This document, sent at least three business days before your scheduled closing, outlines the final numbers for your home purchase. One key figure you’ll see is Cash to Close—but what exactly does that mean?

Edwin Mortgage Team at Edge Home Finance is committed to helping buyers feel confident and prepared for every step of the home buying process. Here’s what you need to know about Cash to Close.

What is Cash to Close?

Cash to Close is the total amount you’ll need to bring to the closing table to finalize your home purchase. It includes:

  • Your down payment
  • Closing costs (lender fees, legal fees, insurance, etc.)
  • Any prepaid expenses or adjustments for credits or deposits you’ve already made

This number is unique to your transaction and will be clearly itemized in your Closing Disclosure.

What Are Closing Costs?

Closing costs are fees required to transfer ownership of a home. Depending on your purchase agreement, these costs can be paid by the buyer, the seller, or split. Typical closing costs include:

  • Appraisal fees (usually buyer-paid before closing)
  • Credit fees, the cost for a lender to access your credit file
  • Attorney or escrow fees for document prep and title search
  • Prepaid interest, the daily cost of interest until first payment
  • Title insurance to protect you from third-party ownership claims
  • Lender fees for application, underwriting, and processing
  • Mortgage insurance premiums, if applicable
  • Government funding fees (FHA, USDA, and VA loans)
  • Pest inspections and other property-related fees

Some fees can be rolled into your loan, but many will be due at closing. Your lender will help clarify which apply to your situation.

Earnest Money and the Down Payment

When your offer was accepted, you likely paid an Earnest Money Deposit (EMD) to show good faith. This amount will be credited toward your Cash to Close at closing.

The largest portion of Cash to Close typically comes from your down payment, which can range anywhere from 0% (for VA and USDA loans) to 20% or more, depending on your loan program.

How to Pay Cash to Close

Because Cash to Close involves large sums of money, lenders and title companies require verified funds. Accepted methods include:

  1. Cashier’s check or certified check: Available through your bank or credit union, made out for the exact amount.
  2. Wire transfer: Sent electronically to the title company or closing agent. Always confirm wire instructions directly with your lender to avoid wire fraud.

Note: Personal checks, cash, debit cards, and credit cards are not accepted for real estate closings.

Why It’s Important to Plan Ahead

Your lender will review your Cash to Close amount with you well before the big day. However, it’s essential to double-check your Closing Disclosure for accuracy and ask questions about anything that seems unclear.

Being financially prepared ensures a smooth, stress-free closing—so you can focus on celebrating your new home.

Ready to Buy Your Next Home?

Edwin Mortgage Team at Edge Home Finance is here to guide you through every step of the home buying process, from pre-approval to closing. If you’re ready to take the next step or have questions about Cash to Close, contact us today for a free consultation.

📞 Call us at 256.371.6811 or visit us at www.edwinmortgage.com to get started!