What is the purpose of the "Calculating Cash to Close" section on the Closing Disclosure?

The "Calculating Cash to Close" section on the Closing Disclosure is designed to summarize the financial aspects of the transaction and provide clarity on what the borrower needs to pay at closing. It outlines the total amounts due from the borrower, including both the cash they need to bring to the closing and how those figures relate to the loan estimate they initially received.

This section is crucial because it helps buyers understand their financial obligations and see how they align with what was estimated earlier in the process. It highlights any discrepancies or changes from the Loan Estimate, ensuring that the borrower knows the exact amount they will need to present at closing, thus making it an informative and necessary part of the disclosure.

In contrast to the other options, summarizing closing costs pertains more broadly to outlining all associated fees, detailing loan terms refers specifically to the specifics of the loan arrangements, and providing total closing costs is an aspect of the overall closing statement rather than focusing specifically on the cash to close.