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Why is a “refundable pad” listed on my estimated closing statement?

The amount of funds required from a Buyer/Borrower for closing is based on the current information available to the Escrow Officer at the time the file is figured. If the closing date changes due to unforeseen circumstances, or charges or fees are revised the Escrow Officer will be unable to make adjustments to pay all the closing costs. A “refundable pad” or “buffer” is used in making these final adjustments and unused money is refunded to the Buyer/Borrower. 

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