Homebuyer’s chapter
Read closing costs line by line
Separate fees, prepaid items and escrow money.
Use the actual documents
Start with the lender's Loan Estimate and provider quotes. Identify loan charges, title and settlement services, taxes, prepaids and initial escrow funding. A percentage of the sale price is not a substitute for these figures. Keep a list of items you still need quoted.
Ask what can change
Some charges may change under specific rules and circumstances. Ask the lender to explain differences between estimates and final documents. Clarify lender credits and seller credits, including restrictions on what they can cover. Do not assume unused credits become cash for you.
Avoid double counting
Earnest money already paid usually affects remaining funds needed; it is not simply another closing fee. An insurance premium paid in advance and escrow deposits may appear separately. In the worksheet, enter each amount once and reconcile with the closing agent's calculation.
Verify before payment
Confirm the final amount and approved payment method through a trusted, independently established contact. Treat last-minute emailed wire changes as suspicious. The CFPB warns about mortgage-closing scams. Do not use a new phone number supplied in the suspicious message to verify it.
Questions to take into the next conversation
- Separate fees, prepaids and escrow deposits in your worksheet.
- Reconcile credits and earnest money with the lender and settlement agent.
- Independently confirm the final amount and payment route before transferring funds.
Why can cash to close differ from total closing costs?
Cash to close can also reflect the down payment, deposits already paid, credits and adjustments. Closing costs are only part of that calculation. Use the final documents and ask the settlement agent to explain every difference instead of adding estimates together without reconciliation.