Understanding Cash to Close in Nashville

When you get your Closing Disclosure, you will see a line called cash to close. That number tells you how much money you need at the final signing to own the home.

If you are buying in Nashville, Brentwood, Franklin, Mt. Juliet, or another Middle Tennessee town, this is the number you plan for before you pick up your keys.

What cash to close includes

Cash to close combines several items into one final amount. The big pieces are your down payment and closing costs. Closing costs cover fees that get the sale from signed contract to transfer of title.

Common fees include the appraisal, title search and title insurance, attorney or closing agent fees, lender application and origination fees, and required inspections such as pest reports. Some loans add mortgage insurance or government funding fees when applicable.

Earnest money and credits

Most buyers already paid earnest money when their offer was accepted. That deposit sits in escrow and is credited toward cash to close. The Closing Disclosure will show that credit and subtract it from the total you owe.

Seller credits or negotiated concessions also reduce your cash to close. If the seller agreed to pay part of the closing costs, that will appear on the Closing Disclosure and lower the amount you bring to closing.

Down payment and financing options

Your down payment is usually the largest single part of cash to close. Depending on the loan type you may bring nothing, a small percentage, or 20 percent or more of the purchase price.

Some fees can be financed into the loan. Talk with your lender early to learn which costs can be rolled into the mortgage and which must be paid at closing. That helps you plan for what you will need in cash.

How to pay and how to avoid scams

Lenders and title companies rarely accept physical cash or credit cards. The safest and most common methods are a cashier's check made payable to the closing agent or a wire transfer to the title company.

If you wire money, verify the exact wiring instructions with your lender or title company by phone before you send funds. Scammers sometimes change wiring details at the last minute. Allow a few days for banks to process wires.

Closing day can feel stressful. Review your Closing Disclosure as soon as you get it and ask questions if anything looks off. If you want a quick review for a Nashville or Middle Tennessee purchase, call or text Keith Goeringer at Barrett Financial Group, NMLS 488023, Company NMLS 181106, 615-955-0461 or visit keithgo.com.

Frequently Asked Questions