What factor might influence the calculation of cash requirements at closing?

The cash requirements at closing are heavily influenced by the earnest money deposit made during the home buying process. The earnest money deposit is a sum of money that the buyer provides to demonstrate their serious intent to purchase the property. This deposit is typically held in escrow and is applied toward the buyer's closing costs or down payment. Therefore, the amount of the earnest money deposit reduces the total cash needed from the buyer at closing.

Other factors like the loan amount, credit score, and duration of the loan can impact financing arrangements or interest rates but do not directly change the amount of cash the buyer must come up with at closing. The cash requirement itself considers the purchase price minus any contributions such as earnest money. Thus, the earnest money deposit is a critical component in the calculation of the cash required at closing.