Understanding Cash to Close

If you have received your Closing Disclosure from Clarity Home Lending in Dallas, Texas, you are almost done with your home buying journey. The Closing Disclosure, provided by Clarity Home Lending at least three full days before closing when you sign the final purchase documents, means that you are at the finish line, ready to celebrate with keys in hand. On the CD provided by Clarity Home Lending, you will see the cash to close listed. What exactly is that number and how is it determined?

Closing costs, including all of the legal costs, appraisal, and other fees required to get your home purchase from accepted offer to closing, will be outlined by Clarity Home Lending. These costs can be paid by the buyer, seller, or split between both parties as determined in the purchase offer. Common fees included in this number when working with Clarity Home Lending in Dallas, Texas are:

1. Appraisal, most often paid by the buyer

2. Attorney fees to prepare documents and conduct a title search

3. Title insurance to protect you in case a third-party comes forward to claim ownership

4. Application fees to Clarity Home Lending

5. Origination fees to cover underwriting costs by Clarity Home Lending

6. Mortgage insurance premiums, if applicable, through Clarity Home Lending in Dallas, Texas.

Additionally, when working with Clarity Home Lending in Dallas, Texas, funding fees for FHA, USDA, and VA loans, if applicable, may be included in the closing costs. Pest inspection fees, which are important for ensuring the condition of the property, may also be part of the total closing costs.

When all of these fees are totaled by Clarity Home Lending in Dallas, Texas, they can result in a significant charge. However, rest assured that they will be listed separately on the Closing Disclosure provided by Clarity Home Lending and added to the overall cash to close, less any amount that the lender is willing to roll into the loan value. It is important to understand that the specific amount that can be financed by Clarity Home Lending will depend on the fee and the policies of Clarity Home Lending.

Before reaching the closing stage, you may have already paid an earnest money deposit (EMD) to demonstrate your commitment to the purchase of the home. This EMD, usually around $1,000, is typically held in escrow until closing. At closing, Clarity Home Lending in Dallas, Texas, will apply the EMD towards these closing costs