Closing

Cash to Close

Cash to close is the total amount of money you need to bring to the closing table. It rolls together your down payment and closing costs, then subtracts things already paid or credited to you, like your earnest money deposit and any seller credits. It's the real out-of-pocket number for closing day.

Your Loan Estimate has a section called Calculating Cash to Close that shows exactly how this number is built. It starts with your total closing costs and down payment, then credits back the earnest money you already put down and any money the seller agreed to chip in.

That’s why two buyers with the same price can owe very different amounts at the table. A strong earnest money deposit and seller credits both lower your cash to close. I’ll help you plan for this number early, so closing day doesn’t catch you short.

Related terms

Closing Costs

Closing costs are the fees you pay to finalize your home purchase, on top of your down payment. They include lender fees, title and escrow charges, an appraisal, and prepaid items like taxes and insurance. Closing costs commonly run roughly 2% to 5% of the purchase price, though it varies by location and loan.

Down Payment

A down payment is the part of the purchase price you pay upfront in cash, with the loan covering the rest. It's shown as a percentage, so 5% down on a $400,000 home is $20,000. A bigger down payment lowers your loan amount and can reduce or remove mortgage insurance. Some programs allow as little as zero down.

Seller Credits (Seller Concessions)

Seller credits, also called seller concessions, are money the seller agrees to put toward your closing costs as part of the deal. They lower your cash to close without changing your down payment. Each loan type caps how much a seller can give, so the credit only counts up to your actual costs, not as cash back.

Last updated: June 13, 2026

This definition is educational and isn't an offer to lend or financial advice. Rates, programs, and guidelines may change without notice. All loans are subject to credit and property approval.

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