When Padzilly displays Cash to Close + RESV/Payoff, your total cash requirement has been separated into two amounts.
Cash to Close is the money required to purchase the home, including your down payment, closing costs, prepaid expenses, and any seller credits or rebates.
RESV/Payoff represents additional funds that may be required by your loan approval. This amount may include:
Required reserves
A required debt payoff
Or a combination of both
For example:
Cash to Close: $23,183
RESV/Payoff: $8,651
In this example, the additional $8,651 is not necessarily paid toward the purchase of the home. It may be money you must keep available after closing, money required to pay off an existing debt, or both.
Your loan officer can explain exactly how the RESV/Payoff amount is divided for your loan.