Page one displays the significant highlights of the transaction for the borrower. The cash to close entry at the bottom of the page is intended to provide the borrower with the exact amount needed to complete the transaction without explaining how the amount was determined.
The Calculating Cash to Close table at the top of page three compares the costs and cash to close as estimated on the Loan Estimate with the final costs and cash to close disclosed on the Closing Disclosure.
The cash to close entry at the bottom of page three displays the amount determined by subtracting the borrower’s credits in Section L from the borrower’s debits in Section K.
All three entries must be the same. If not, there is a problem with one or more entries on the CD. Often it is due to an improper calculation of the “Down Payment/Funds from Borrower” entry in the Calculating Cash to Close table.