What constitutes the total due from the borrower at closing?

The total due from the borrower at closing is calculated by summing the purchase price of the property and the closing costs. This total represents the overall financial obligation the borrower must meet at the closing table.

The purchase price is the agreed-upon amount for which the property is being sold, while closing costs encompass various fees and expenses incurred during the transaction. These can include loan origination fees, title insurance, appraisal fees, recording fees, and other necessary costs to finalize the real estate purchase.

Thus, to accurately determine the total amount the borrower needs to bring or pay at closing, both components—the purchase price and the closing costs—must be considered. This comprehensive calculation ensures that all financial obligations of the transaction are accounted for, allowing for a smoother closing process.