Escrow and Closing

An appraisal contingency is a contract condition that protects the buyer if the property's appraised value does not support the agreed deal.

Cash to close is the total amount of money the borrower must bring or wire to complete the mortgage transaction.

Closing is the final mortgage transaction stage in which documents are signed, funds are coordinated, and ownership transfer moves toward completion.

Closing costs are the fees and charges required to complete a mortgage and property transfer.

The closing date is the scheduled day on which the mortgage transaction is expected to be signed, funded, or otherwise completed.

The Closing Disclosure is the final mortgage disclosure that shows the borrower the settled loan terms, projected payments, and closing figures.

A contingency is a contract condition that must be satisfied, waived, or resolved for a home purchase to proceed as planned.

An earnest money deposit is a good-faith deposit made with an offer to show serious purchase intent.

Escrow is a neutral holding arrangement used to manage money or documents until mortgage and purchase conditions are met.

An escrow account is a lender-managed account that collects part of the monthly payment for taxes, insurance, and related housing charges.

Mortgage escrow and closing terms that explain disclosures, cash needs, deadlines, and final transaction mechanics.

An escrow waiver allows the borrower to pay certain property charges directly instead of funding them through a lender-managed escrow account.

A final walk-through is the buyer's last check of the property before closing to confirm its expected condition and status.

The Loan Estimate is the early mortgage disclosure that outlines projected loan terms, payments, and closing costs.

A mortgage contingency is a contract condition protecting the buyer if financing cannot be obtained on the agreed terms.

Prepaid items are closing amounts collected in advance for expenses such as taxes, insurance, or daily interest that relate to the period right after closing.

Prorations are closing adjustments that divide certain ongoing property expenses or credits between buyer and seller based on timing.

A recording fee is the government charge for entering deeds, mortgages, or related documents into the public record.

Seller concessions are seller-paid contributions toward the buyer's closing-related costs, subject to transaction and loan-program limits.

A settlement agent is the person or entity coordinating the closing process, documents, and money movement for the transaction.

Settlement costs are the charges associated with completing the mortgage settlement and property transfer.

A title company is the firm that helps handle title review, title insurance, and often key parts of the closing process.

A wire transfer is the electronic movement of funds often used to deliver closing money or pay off an existing mortgage.