Reviewing deposit and down-payment entries in cash to close
Ensure your earnest money deposits and down-payment funds are accurately reflected in the 'Cash to Close' summary on your final closing disclosure.
The short answer
The 'Cash to Close' section summarizes the funds you must provide to settle your mortgage. To verify, confirm that your earnest money deposit is subtracted from the total amount owed and that your down payment is accurately recorded. These figures must align with your contract records to ensure your final payment reflects the correct remaining balance.
Tracking Earnest Money Deposits
Your earnest money deposit, paid early in the transaction, should appear as a credit on the closing disclosure, effectively reducing the cash you need to bring to closing. Verify this amount against your receipt or bank confirmation to ensure the closing agent has accounted for the funds correctly.
Worksheet: List the date and amount of each deposit made during the buying process. Compare the total of these deposits to the 'Deposit' line item on your closing disclosure.
Verifying Down Payment Figures
Your down payment is the portion of the sale price you cover with your own funds. Confirm this amount matches the percentage or fixed amount agreed upon in your loan documentation. Ensure that this amount does not include items that should be categorized as closing costs or prepaid expenses.
Planning Example: If your contract specifies a 10% down payment on a $300,000 home, the disclosure should show $30,000 as your principal down payment contribution.
Calculating Total Cash to Close
The final 'Cash to Close' is calculated by taking the sale price, adding closing costs, and subtracting credits and deposits. Review the calculation flow on the summary page to verify that all variables, including your deposits, have been applied accurately to reach the final figure due.
Worksheet: Use the following formula: [Sale Price] + [Total Closing Costs] - [Down Payment] - [Earnest Money Deposits] - [Seller/Lender Credits] = [Net Cash Due]. Check your disclosure to see if it follows this logic.
Addressing Deposit Omissions
If an earnest money deposit is missing, contact the settlement agent immediately. Provide copies of your canceled checks or bank transfer confirmations to verify that the money was paid. Do not rely on verbal assurances; insist that the closing disclosure is corrected to show the missing credit.
Planning Example: If you paid a $5,000 deposit that is missing from the disclosure, ask the closing agent: 'I have proof of my $5,000 deposit. Can you please add this to the statement so the Cash to Close total is accurate?'
Checklist
- Gather all records of earnest money payments.
- Compare deposit amounts to the closing disclosure.
- Verify the down payment matches your loan agreement.
- Check the final 'Cash to Close' calculation for accuracy.
- Ensure all credits are correctly deducted from the total.
Common questions
What should I do if my deposit isn't shown on the disclosure?
Notify your closing agent immediately. You will likely need to provide proof of payment, such as a bank record, to ensure the amount is credited toward your final total before the closing appointment.
Is the down payment the same as 'Cash to Close'?
No. The down payment is only one part of the Cash to Close. The latter also includes closing costs, taxes, and other fees, minus any credits or deposits you have already provided during the home buying process.
Sources
- CFPB — Loan Estimate explainerChecked October 12, 2026
- CFPB — Closing Disclosure explainerChecked October 12, 2026
- Illinois Department of Revenue — Property tax overviewChecked October 12, 2026
- IRS Publication 523 — Selling Your HomeChecked October 12, 2026
This guide is general educational content from SQFT IO, prepared with AI assistance. It is not legal, tax or loan advice. Talk with a licensed attorney, tax professional or lender about your situation. SQFT IO Illinois license 478.027617.