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What is the difference between closing costs and the cash reserves needed to close a transaction?

April 26, 2017cash closing costs needed reserves transaction

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What is the difference between closing costs and the cash reserves needed to close a transaction?

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The closing costs are less than the total verified funds needed. Closing costs include points, real estate taxes, insurance premiums, survey costs, title policy costs, and several other lesser fees. Verified funds would include the closing costs plus several months of PITI. Reserves are additional funds required by various programs.