Closing disclosure cash to close calculator

Frequently asked questions

What is a Closing Disclosure and when do buyers receive it?

A Closing Disclosure is a standardized form lenders are required to provide before settlement that details final loan terms, closing costs, and the cash-to-close amount. Federal rules require lenders to deliver it a minimum number of business days before closing; check current CFPB guidance for the specific timing requirement, as it can depend on loan type.

Why is cash to close different from the down payment?

The down payment covers the gap between the purchase price and the loan amount. Cash to close adds closing costs to the down payment requirement, then subtracts credits like earnest money already paid, seller concessions, and lender credits. The result is typically higher than the down payment alone.

What are seller credits and how do they reduce cash to close?

Seller credits are amounts the seller agrees to pay toward the buyer's closing costs as part of the purchase negotiation. They reduce the cash the buyer must bring to closing dollar for dollar, up to program limits. Lender credits work similarly but come from the lender, often in exchange for accepting a slightly higher interest rate.

Can cash to close ever be negative?

In this model it can, which would indicate total credits exceed the amount due — meaning the borrower would receive cash back at closing. Whether that is actually permitted depends on the loan program, lender policy, and how the credits are structured.