Question:

What is required cash?

Answer:

Required cash is the cash the buyer needs to bring in at the time of closing. Required cash totals the down payment, any discount points, and fixed costs charged upfront by the lender.

Escrow funds, per diem interest and title insurance are some other costs associated with required cash.

The Good Faith Estimate would show the required cash necessary to close the purchase or refinance loan transaction. If charges on the GFE do not correspond to the HUD-1 statement and the borrower is required more cash with thousands to close the deal, the borrower may like to walk away.

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