How Much Money Do I Need to Bring to Closing?

How Much Money Do I Need to Bring to Closing? 

This is a question that gets asked early on with every closing.  The reality is that its too early to have an exact amount.  At the time of your loan application, you are provided with an estimate that details your total estimated settlement charges.  This is your best estimate that is available. 

The lender fees from the estimate should not change.  Once the actual closing attorney/title company fees are available, they will then be updated on the estimate.  The closing attorney/title company will also provide the actual property tax amount.  It is the borrower's responsibly to obtain the quote for their home owner's insurance premium. 

Once the loan have been approved and all outstanding conditions satisfied, the loan will be clear to close.  From that point, the file will be moved to the mortgage company's closing department.  The closer will prepare the closing instructions and send them to the closing attorney/title company's office.  Their closer will then prepare the HUD Settlement Statement.  Once the HUD has been reviewed for correctness, a copy will be provided to all parties.  At this time, the final amount needed to close will be available.  This typically only happens 1-3 business days prior to the actual closing date. 

It is important to remember that your funds for closing will need to be in the form a cashier's/certified check or they can be wired directly into the closing attorney/title company's escrow account.  Some may accept a personal check, but the amount generally cannot exceed $500-1,000.  The requirements do vary from office to office though so it is important to verify on individual requirements.