What Can Be Included in Cash to Close
Your total may reflect:
- Your down payment
- Lender charges, points, and mortgage-insurance costs
- Appraisal, title, settlement, and recording charges
- Prepaid homeowners insurance, property taxes, and interest
- Initial escrow deposits, when required
- Association transfer, working-capital, or other one-time charges, when applicable
- Earnest money and other deposits already paid
- Seller credits, lender credits, and other adjustments
The exact combination depends on the loan, property, county, contract, closing date, insurance, taxes, title work, and any association documents.
Start With the Loan Estimate
The Loan Estimate shows estimated closing costs and Cash to Close for the proposed loan. Review it alongside your purchase contract rather than treating either document as a complete answer by itself.
Check that the purchase price, down payment, loan amount, earnest-money deposit, and negotiated credits are reflected correctly. If you are comparing loan options, look at both the upfront amount and the longer-term borrowing cost. A lender credit can reduce costs due at closing while being tied to a higher interest rate than a comparable loan without that credit.
If you are still comparing financing, the Mortgage Pre-Approval guide explains what to clarify before making an offer.
Compare the Closing Disclosure Line by Line
For covered mortgage transactions, borrowers generally receive the Closing Disclosure at least three business days before the scheduled closing. Compare it with the most recent Loan Estimate and focus on:
- The final loan terms and interest rate
- Charges that changed, disappeared, or were added
- Earnest money and other deposits
- Seller and lender credits
- Tax, insurance, interest, and escrow amounts
- The final Cash to Close figure
Ask about anything you do not recognize. Do not assume that a changed total is necessarily an error: a revised closing date, updated insurance premium, tax information, title work, or contract amendment can change date-sensitive lines.
Keep Earnest Money, Down Payment, and Closing Costs Separate
Earnest money is a deposit made under the purchase contract. It is not automatically an extra charge on top of Cash to Close. When properly credited, it reduces the remaining amount due.
Your down payment is the portion of the purchase price you are funding outside the loan. Closing costs are the separate charges and prepayments connected with financing and completing the transaction. The disclosure brings those figures together into the final Cash to Close calculation.
Verify Colorado and County-Specific Charges
Colorado uses a flat-fee framework for covered county-recorded documents, but that does not create one universal recording amount for every document, surcharge, county, or future date. Confirm the applicable recording charges with the title company for the county and documents involved.
If the property is in Arapahoe County, a documentary fee can apply when the consideration exceeds the county’s stated threshold. Treat that as an Arapahoe County item rather than assuming the same charge applies throughout Colorado.
Property-tax treatment also requires county-specific review. In Jefferson County, tax liability at sale is generally settled through a seller proration collected by the title company and credited to the buyer. In Douglas County, property taxes are billed one year in arrears. These examples show why the county, tax year, closing date, and settlement statement all matter; they do not establish one statewide calculation.
Check the Property and Association Documents
For a condominium, townhome, or association-governed property, ask whether the closing includes a transfer fee, working-capital contribution, document charge, prepaid assessment, or other one-time amount. Confirm who pays it under the contract and where it appears in the estimate.
Also verify whether a known assessment, insurance issue, tax adjustment, or title requirement could affect the amount due. The right source may be the lender, title company, insurer, county, association, or another qualified professional—not a general estimate.
Before You Send Closing Funds
Confirm the final amount and approved payment method directly with the title or settlement company using trusted contact information. Treat any emailed change to wiring instructions as something that must be independently verified before funds are sent.
For the broader sequence from financing through closing, return to the Home Buyer Guide.
Review Your Cash-to-Close Estimate With Kenna Real Estate Group
Kenna Real Estate Group can help you review a property-specific cash-to-close estimate and identify the right lender, title, county, tax, insurance, or association question to ask before closing.