Required Cash
Contents
Unlocking the Mystery of Required Cash in Real Estate Transactions
Exploring Required Cash
Required cash, also referred to as cash to close, plays a pivotal role in finalizing real estate transactions. This comprehensive guide unravels the complexities of required cash, shedding light on its components, forms, and regulatory framework.
Understanding Required Cash
Required cash represents the total amount of funds necessary to close a mortgage or refinance. Whether through wire transfer or cashier's check, buyers must deliver the required cash amount, encompassing down payments and closing costs, to complete the transaction.
Components of Required Cash
The down payment, historically ranging from 10% to 20% of the purchase price, forms a significant portion of required cash. Additionally, funds for purchasing points to lower interest rates and various fees associated with property transfer contribute to the required cash amount.
Forms Listing Required Cash
The Consumer Financial Protection Bureau (CFPB) mandates lenders to disclose required cash through TILA-RESPA Integrated Disclosures (TRID) forms. These forms provide borrowers with detailed estimates of required cash, ensuring transparency and compliance with regulatory standards.