"How much do I actually need to bring to closing?" It's one of the first questions buyers ask me, and the answer is almost always more than just the down payment. The total number is called cash to close, and understanding it early keeps you from scrambling at the finish line.
What cash to close includes
Cash to close is the full amount of money you need to bring to the closing table. It has three main pieces:
Your down payment. This is the portion of the purchase price you're paying out of pocket — 3%, 5%, 10%, 20%, whatever your loan requires.
Closing costs. These are the fees to actually complete the transaction: lender fees, title search and title insurance, appraisal, survey, recording fees, and prepaid items like homeowners insurance and property taxes set aside in escrow. In Louisiana, plan on roughly 2–5% of the purchase price.
Prepaid and escrow items. Your lender will usually collect several months of homeowners insurance and property taxes upfront to fund your escrow account. In Louisiana, where insurance premiums run high, this chunk surprises people more than anything else.
The Loan Estimate is your friend
Within three business days of applying for a mortgage, your lender must send you a Loan Estimate — a standardized form showing your estimated cash to close. Read it. Then, at least three business days before closing, you'll get the Closing Disclosure with the final numbers. Compare the two. Most figures shouldn't move much.
How to avoid last-minute surprises
- Ask your lender for a worst-case estimate early, not a rosy one.
- Budget for Louisiana insurance costs — get a real quote during your inspection period, not the week of closing.
- Keep extra reserves. Lenders like to see money left over after closing, and you'll sleep better too.
- Don't make big financial moves between application and closing. No new cars, no new credit cards.
Buying in Baton Rouge and want a realistic picture of your numbers before you start? Give me a call at (225) 570-1234 — I'll walk you through it.
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