---
title: "What Is a Required Payoff?"
description: "Learn why your loan approval may require paying off a debt before closing and how it affects your total cash requirement."
url: https://homes-support.padzilly.com/en/articles/109-what-is-a-required-payoff
collection: "Using Padzilly"
updated: 2026-08-04
language: en
alternates: [es]
---

# What Is a Required Payoff?

Learn why your loan approval may require paying off a debt before closing and how it affects your total cash requirement.

A **required payoff** means your loan approval requires that one or more existing debts be paid off or reduced before or at closing.

Examples may include:

-   Paying off a credit card
    
-   Paying off an installment loan
    
-   Reducing an outstanding balance
    
-   Satisfying another debt required by your loan approval
    

Lenders sometimes require a payoff because eliminating certain debts can improve your debt-to-income ratio or satisfy other underwriting requirements.

If a payoff is required, Padzilly includes the estimated amount in your **Total Cash Needed** so you understand the complete amount of funds that may be required to close your loan successfully.

Your loan officer can provide the exact debt being paid off and confirm the required amount.