Cash to Close: What’s This Bill That Sneaks Up Right Before You Get the Keys?
Real talk — buying a house is wild enough. You’ve crunched numbers, juggled loan docs, and now, right before the finish line, someone says, “We’ll need your cash to close.”
Cash to close, cash to close, cash to close. If you’ve been scrolling Zillow at 2AM, running mortgage calculators more than Spotify, you’ve already seen this term more than once. But what does it actually mean? And more importantly—how much is it? Who decides that? Is it negotiable?
Let’s lay it out the way you’d talk to your most skeptical friend at a BBQ.
What Is Cash to Close?
It’s the lump sum you bring on settlement day. You hand this over to wrap up your real estate deal and walk out a homeowner. Think of it like closing the tab, only this one’s way higher than your post-gym smoothie run.
- It’s not just your down payment
- It includes loan fees, title fees, taxes, insurance… aka all the stuff no one brags about on Instagram
- It’s the number on that final Closing Disclosure
The bank or lender sends over the Closing Disclosure at least 3 days before closing day. That’s where you’ll see your cash to close—in black and white, right there with every fee and credit in the stack.
Need more examples of what’s in it? Let’s keep it straight:
| Fee/Charge | Included in Cash to Close? |
|---|---|
| Down Payment | ✅ Yes |
| Appraisal Fees | ✅ Yes (if unpaid) |
| Loan Origination Fees | ✅ Yes |
| Homeowners Insurance Premium | ✅ Yes |
| HOA Dues (if prepaid) | ✅ Yes |
| Earnest Money (Already paid) | ❌ Already credited |
How Cash to Close Is Different from Closing Costs
People mix these terms up all the time.
Your cash to close is the full amount you need to bring.
Your closing costs are just one chunk of that number.
Example:
Say you’re buying a place for $400K with a 5% down payment.
- Down payment = $20,000
- Closing costs (loan fees, title insurance, 1st year HOA, etc.) = $10,000
- But — you already paid $5,000 in earnest money
- Cash to close = $25,000 (not $30K)
Some stuff gets credited back. That’s why your cash to close goes up or down and isn’t just “down payment + fees.”
If this feels like too much math, just remember: down payment and closing costs are inputs — cash to close is your final “out-the-door” number.
When Is Cash to Close Due?
Most lenders want it wired 1-2 days before closing. Late money = delayed closing. Nobody wants that. Your lender or title company should give you wiring instructions or tell you the certified check amount and who to make it out to. Don’t just Venmo your agent (please ).
Where Do You Pull That Money From?
Cash to close should be “seasoned” funds — meaning that money’s been in your account for at least 60 days. If you’re getting gift funds from fam, make sure the lender knows and that paper trail is clean. Zelle or Cash App might not count if it doesn’t show the source.
You can pull from:
- Checking/Savings
- 401(k) loan (be careful — fees and penalties apply)
- Down payment assistance programs
- Grants (some are location-based — check reAlpha blog for city-specific guides)
What Can Affect Your Cash to Close?
Expect changes. It’s annoying, but it happens.
- Increased prepaid taxes because you’re closing closer to the end of tax cycle
- HOA fee adjustments if the seller hasn’t pre-paid everything
- Lender credits may come in last-minute to help cover some costs
- Rate changes if your loan wasn’t locked
If you’re using something like a DSCR loan (real estate investors, you feel me), fees can differ big time, which means that cash to close jumps.
I’ve seen buyers caught off guard over a $3K swing… all because the insurance binder wasn’t emailed in time and they had to escrow the whole year.
Should You Negotiate Cash to Close?
100%. Not all pieces are movable, but here’s where to push:
- Ask for seller concessions — sometimes sellers will cover some (or all) your closing costs
- Buy down your interest rate with lender credits or points
- Shop multiple lenders — you’d be shocked at the difference in costs
Plug for smart shopping: if you’re still deciding who should fund your deal, check this out — DSCR loan tactics for leverage.
FAQs
Can I use a credit card for cash to close?
A: Nope. Big no. Must come from liquid funds, like a bank account.
Q: Where should I wire the funds?
A: Only to the account listed on your verified wire instructions from the title/escrow officer. Always confirm — wire fraud is real.
Q: Is cash to close always a surprise number?
A: It shouldn’t be. You’ll get a Loan Estimate early, and a Closing Disclosure before closing. Keep both, compare, and ask questions.
Q: What if I don’t have enough saved?
A: Talk to your lender early. They can help you apply for down payment help or adjust your loan terms. Better to admit it now than scramble later.
Q: Does earnest money count toward cash to close?
A: Yes — most of the time, it’s included as part of the credits. So it reduces what you owe at the end.
Conclusion
Let’s stop here for now. In Part 2, we’re going to walk through real-life examples of how cash to close is calculated, variations across loan types, and the overlooked line item that can throw off your entire deal last second. If you don’t know your cash to close, you don’t know your real number. So bookmark the reAlpha blog at