What the number includes
Cash to close is everything you bring to the closing table: your down payment, plus closing costs (lender fees, title, escrow, recording), plus prepaid items (property taxes, homeowners insurance, prepaid interest), minus your earnest money already on deposit and any seller credits.
It commonly surprises buyers who budgeted only the down payment. On a $400,000 purchase, closing costs and prepaid items frequently add $8,000-$14,000 depending on local taxes, insurance, and the timing of the closing.
Where the estimate comes from
Your Loan Estimate shows a projected cash to close within three business days of applying. The final figure arrives on the Closing Disclosure at least three business days before signing. Compare the two line by line. Lender fees should match, and third-party fees should be close.
Getting the funds there
Closing funds usually have to be wired or brought in certified form. Personal checks are not accepted for large amounts. Schedule the wire the day before closing where you can.
Wire fraud is a real risk in this transaction. Confirm wiring instructions by phone using a number you looked up independently, never a number contained in an email, even one that appears to come from your title company.
Ways to reduce cash to close
Seller credits negotiated into the contract, lender credits taken in exchange for a higher rate, gift funds from family, and down payment assistance programs each reduce what you bring. Closing later in the month also reduces prepaid interest.
You can model most of these trade-offs yourself before you talk to anyone. The purchase calculator at /mortgage-calculator/purchase/ will show how the down payment and credits move the cash figure.