There is one number on a home purchase that makes people nervous, and it has a plain name: cash to close. Let me tell you exactly what it is, where the figure comes from, and how to move it without losing a cent to fraud.
Written by Anthony I. Shin, Esq., Principal and real estate attorney at Prime Title & Escrow
Cash to close is the total amount you need to bring to complete your purchase. It is real money moving on a real day, which is why it deserves a clear explanation and a careful plan, not a forwarded email and a hope.
Your cash to close is your down payment plus your closing costs, minus your earnest money deposit and any credits from the seller or the lender. The exact figure appears on your Closing Disclosure, which your lender must send at least three business days before you sign. That is the number to trust.
Where the number comes from
Several pieces add up to your cash to close: your down payment, the lender’s fees, the title and settlement charges, the recording and recordation taxes, and the prepaid items like the first year of insurance and a few months of property taxes. From that total, your earnest money deposit and any agreed credits are subtracted. Your Closing Disclosure itemizes every line, and you can compare it to the Loan Estimate you received at application. If anything looks different from what you expected, call me before closing day.
How to send it: a wire transfer
For most closings, you send your cash to close by wire to my escrow account a day or so ahead of time. A wire is fast and traceable, and it means the funds are confirmed and waiting when we sit down. You bring the confirmation to the table, and we are ready.
Cashier’s checks, and what to avoid
For smaller balances, a cashier’s check may be acceptable, but confirm the amount and the method with me first. A personal check is not suitable for large sums, and you should never bring currency. When in doubt, ask, because the wrong instrument can hold up your closing.
Treat every wiring instruction as suspect until you confirm it by phone using a number you already have. I will never email you new instructions out of the blue. The FBI’s Internet Crime Complaint Center (IC3) tracks billions of dollars in losses from business email compromise, and home buyers are squarely in the crosshairs because the timing and the amounts are easy to predict. If anything about the instructions changes, stop and call my office at (703) 552-4155.
How to wire safely, step by step
Get instructions from a verified source. Take your wiring instructions directly from me, not from an email forward or a link, and not from a message that arrives unexpectedly.
Call to confirm before you send. Phone my office at the number you already have, and read the account details back to a person you have spoken with. Do not rely on a number printed in an email.
Send from your bank. Wire in person or through verified online banking, and double check every digit of the account information as you enter it.
Confirm the funds arrived. Call me after you send to confirm the wire landed in escrow. A quick call closes the loop and catches any problem early.
Keep your confirmation. Save the wire confirmation and bring it to closing so we can match it to your file.
If money is coming back to you
Sometimes funds flow the other way, when you overpay slightly or when you are the seller receiving proceeds. In that case I disburse under Virginia’s Wet Settlement Act, within two business days of settlement, and I confirm your payout method with you by phone, never by email alone. For the full sequence around your closing, see what happens at a Virginia closing.
When to send your funds
Send your cash to close once you have verified instructions and a confirmed closing date, usually a day or so before signing. Not weeks ahead, which ties up your money before the deal is certain, and not the morning of, which risks the wire not settling in time. I will tell you the right window for your closing and confirm the moment the funds land in escrow.
It also helps to know that your earnest money deposit is already working in your favor. You paid it earlier, and it reduces your cash to close, so you are not paying it twice. The same is true of any seller or lender credits. Your Closing Disclosure does that arithmetic for you, which is why the final figure on it is the only number to wire against.
I will give you verified instructions and confirm every detail with you before a single dollar moves.
Get Your Free Quoteor call (703) 552-4155This article is general information about cash to close in Virginia and West Virginia. It is not legal or financial advice for your specific transaction, and figures vary by deal. This touches on fraud and money safety, so if you ever suspect a wire has gone wrong, contact your bank and me immediately.
Frequently asked questions
What is cash to close?
It is the total you bring to complete your purchase: your down payment plus closing costs, minus your earnest money deposit and any credits. The final figure appears on your Closing Disclosure.
How do I pay my cash to close in Virginia?
Most buyers wire the funds to the settlement agent’s escrow account ahead of closing. A cashier’s check may be acceptable for smaller amounts, but confirm the method with your settlement agent first.
Is it safe to wire my down payment?
Yes, as long as you verify the instructions by phone before sending, using a number you already have. Wire fraud is the main risk, and a quick confirming call defeats it.
How do I avoid wire fraud at closing?
Never trust an emailed change to wiring instructions. Confirm every detail by phone with a known number. A reputable settlement agent will never email you new instructions out of the blue.
When will I get money back if I overpay?
Any refund or seller proceeds are disbursed under Virginia’s Wet Settlement Act, within two business days of settlement, with the payout method confirmed by phone.