Understanding Cash to Close in Nashville

The Closing Disclosure has a line called cash to close. That is the number you fund.

It is not the down payment by itself. It is down payment plus closing costs, minus earnest money already sitting in escrow, minus seller credits and lender credits. If you are buying in Nashville, Brentwood, Franklin, Mt. Juliet, or another Middle Tennessee town, this is the number you plan for before you pick up keys.

Down payment plus costs, minus credits

Closing costs cover the fees that get you from contract to recorded deed: appraisal, title search and title insurance, attorney or closing agent, lender fees, and required inspections such as a pest report. Some loans add mortgage insurance premiums or a VA funding fee.

I will not invent fee dollar amounts for your file. In Tennessee, closing costs often run about 2% to 6% of the loan amount. That is a planning band. Your Closing Disclosure is the list.

Earnest money already paid still counts

Earnest money you already paid sits in escrow and credits toward cash to close. Seller concessions and lender credits also reduce the amount you bring. They have to be in the contract and allowed by the loan program. A handshake credit that never made it onto the purchase agreement does not show up on the CD.

The Closing Disclosure will show those lines. Read them. If a credit you were promised is missing, that is a call the same day, not a surprise at the table.

Some fees can ride on the loan. Ask which ones must be cash

Your down payment is usually the largest piece. Depending on the loan you may bring nothing extra for down payment, a small percent, or 20% or more. Some fees can be rolled into the loan. Ask early which costs must be cash. That is how you stop guessing three days out.

The CD arrives at least three business days before you sign

The CFPB requires that you receive the Closing Disclosure at least three business days before consummation on most closed-end mortgages. Consummation is when you become obligated on the loan, usually signing day. An earlier estimate is on the Loan Estimate. The CD is the one you fund to.

If you have not received it, ask for it and do not close until you have read it. That is the CFPB's guidance, not a slogan.

Verify the wire on a number you already have

Lenders and title companies rarely take a personal check or a credit card. A cashier's check to the closing agent or a wire to the title company is the usual path. Allow a few days for the bank to process.

The CFPB has warned buyers about mortgage closing scams. Scammers change wiring details at the last minute. Title companies do not email a new account number the night before closing and hope you send six figures.

• Call the title company or your lender on a number you already have, not the number in a last-minute email.
• Confirm the account name and number out loud before you send.
• Do not click a wiring-instruction link in an email.
• Do not email account numbers or copies of checks.
• If the instructions changed, stop. Call. Then send.

Read the CD the day it arrives

Compare it to the Loan Estimate. Ask about any line you do not recognize. A wrong HOA prepaid, a missing seller credit, or a fee you already paid should get fixed before you wire, not after.

If a line looks off, call or text (615) 955-0461 before you send money. Keith Goeringer, Barrett Financial Group, NMLS #488023.