What “cash to close” means
Cash to close is the amount you bring to closing: your down payment plus closing costs, minus anything you’ve already paid or been credited. The biggest subtraction is usually your earnest money deposit, which counts toward what you owe at closing.
How it’s calculated
This calculator starts with your down payment, adds estimated closing costs for the state (or your own quote, if you have one), then subtracts the earnest money you’ve paid and any seller or lender credits. If you’re using an FHA or VA loan, the upfront mortgage insurance or funding fee is usually added to the loan, so it isn’t part of your cash.
An example
For a $650,000 home in New Jersey with 20% down and a $20,000 deposit already paid, the down payment is $130,000 and closing costs are roughly $14,000 to $29,000. Subtracting the deposit, you’d bring about $124,000 to $139,000 to closing.
Getting the exact number
With a mortgage, you receive a Closing Disclosure at least three business days before closing that shows the exact amount. Cash buyers get a settlement statement from the title company or attorney. The figure can change slightly with your closing date, since prepaid interest and tax adjustments depend on the day.
Protect your money
- Wire funds only after calling your closing agent at a number you already know to confirm the instructions.
- Be suspicious of any email changing wiring details at the last minute.
- Move the money into your account a few days early; large transfers can take time to clear.
Don’t forget what comes after closing
Cash to close isn’t the only money you’ll need. Lenders often want to see some savings left over after closing, called reserves, and moving costs, furniture, utility deposits and the first repairs arrive quickly. Many buyers aim to keep at least a few months of mortgage payments in the bank after closing. If the number above leaves you with little cushion, look at a slightly lower price, a smaller down payment or assistance programs.
Questions buyers ask
Is the down payment included in cash to close?
Yes. Cash to close is the down payment plus closing costs, minus your deposit and any credits.
Does my earnest money count?
Yes. It’s credited toward what you owe at closing.
When will I know the exact amount?
Your Closing Disclosure, sent at least three business days before closing, shows it for financed purchases.