Home Buying in 60402>Question Details

Bubbles, Home Buyer in Berwyn, IL

closeing costs and cash to close are two separate things?

Asked by Bubbles, Berwyn, IL Thu Jan 20, 2011

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Attorney Ranj Mohip’s answer
Closing costs are fees in addition to the sales price. On a $100K sales price, you may have $4K (just an example) of closing costs. This means that you would have to pay $104K for the property.

Now assume you got a loan for $95K. The $104K price minus the $95K loan is $9K. You would have to bring $9K to the closing.

So your closing costs are $4K and the cash to close is $9K. Your attorney can explain it in further detail.

The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
2 votes Thank Flag Link Thu Jan 20, 2011
$104k what does it means in australia?
0 votes Thank Flag Link Sat Feb 23, 2013
Closing costs are what you pay to the title company, escrow, etc. Cash to close is the sum of everything, including your down payment.
0 votes Thank Flag Link Thu Jan 20, 2011
Bubbles,

Yes, they are two separate things. Closing costs are the fees associated with taking out a mortgage. It is simply the "cost of doing business". Cash to close is the amount of money you need to bring to the closing, which will include your closing costs, any down payment, and escrows for property taxes and homeowners insurance. Your loan officer should be able to explain the differences to you and also provide a breakdown of the estimated total amount.

Good luck,
Mike.
0 votes Thank Flag Link Thu Jan 20, 2011
The cash to close is the final amount that you need to bring to closing. This final amount would include your closing costs but will also be made up of other amounts like your down payment, etc less the credits given on your behalf.
0 votes Thank Flag Link Thu Jan 20, 2011
Actually the cash to close will incorporate your closing costs. The cash to close will also include any down payment that you were required say 3.5% for fha or 5% for conventional and so on.

Your closig attorney or title company can easily gove you the amount you will need to bring to closing before your closing so you can get teh funds available and bring then in the form of a cashiers check. You can also ask your loan officer to get an estimate for you.

Please see my blog for tips and advice on getting a mortgage
0 votes Thank Flag Link Thu Jan 20, 2011
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