Closing Costs
Closing costs are one of the biggest areas of confusion in the mortgage process because they are not just one thing.
This section explains closing costs, cash to close, prepaids, escrows, seller concessions, and why the numbers can change before closing.
Articles in This Section
What Are Closing Costs?
A plain-English explanation of the costs that can come with buying or refinancing a home.
What Is Cash to Close?
Cash to close is the total amount you need to bring to closing after credits and adjustments.
Prepaids vs. Closing Costs
Prepaids and closing costs both affect cash to close, but they are not the same thing.
What Are Seller Concessions?
Seller concessions are seller-paid credits that may help with allowable buyer costs.
Why Closing Costs Can Change
Closing costs can change as real figures come in during the mortgage process.
How Escrows Affect Cash to Close
Escrow setup can affect the amount of money needed at closing.
Bottom Line
Closing costs are part of the real cash needed to close. The more clearly those numbers are reviewed early, the fewer surprises there should be later.
Educational Note
This page is meant to explain the mortgage process in plain English. It is not a loan approval, commitment to lend, rate quote, or legal/tax advice. Mortgage programs, pricing, payments, documentation requirements, and guidelines can change. Final approval depends on credit, income, assets, property approval, appraisal, title review, underwriting review, lender guidelines, and approved credit.