Understanding Cash to Close
If you’ve received your Closing Disclosure, you’re almost at the finish line. One of the most important numbers on this document is your “cash to close” — the total amount you’ll need to bring to the closing table.
What’s Included in Cash to Close?
Down payment — Your portion of the purchase price. This varies by loan type: 0% for VA and USDA, 3% for conventional, or 3.5% for FHA.
Closing costs — Fees for loan origination, appraisal, title insurance, attorney fees, escrow deposits, and recording fees. These typically run 2-5% of the loan amount.
Prepaid items — Your lender may require prepaid homeowner’s insurance, property taxes, and per-diem interest from closing to the end of the month.
Credits That Reduce Your Cash to Close
Earnest money deposit — The good-faith deposit you made when your offer was accepted gets applied to your cash to close.
Seller concessions — In some markets, sellers agree to cover part of your closing costs.
Lender credits — You may receive credits in exchange for accepting a slightly higher interest rate.
Tips to Reduce Cash to Close
Ask about seller-paid closing costs when making your offer. Explore down payment assistance programs available in Texas. Compare lender credits versus paying points. QuickFund Mortgage can help you structure your loan to minimize upfront costs while keeping your long-term costs low.