Closing Disclosure vs. Estimated Borrows Statement? HELP.

[Anonymous]

I don't know if I should be fuming yet, but I am. Last Friday, I was sent our Closing Disclosure after our loan had been approved. I signed the closing disclosure, agreeing to the terms and conditions, and the cash needed to close. (Total cash needed to close is $53,518.) I was very happy at the time because this was about $2,000 less than the original Loan Estimate that we received. All was good there. Well, this week, our file went to the title company to have all of the final title documents prepared. I sopke with our real estate agent yesterday to ask questions about the title process, being that it's been a few days and I haven't heard anything, and he said that he received a document from the title company that said our estimated cash to close was $55,950. Ummm... what? I was never sent this email. I called my loan officer this morning to ask him about the $2,500 discrepancy and he said that, while it is not final, the figure he got this morning was $54,800. He said that the real 'cash to close' amount will come through on what is called an Estimate Borrow's Statement? He said that $54,800 is not final, but I am confused as hell as to why the numbers are jumping around and why I signed a closing disclosure agreeing to the cost when that number was going to be higher? Does anyone have insight into this? Is this normal for things to come back from title with higher fees?

I am in California, if it matters. 

[StartingOver10]

Yes, it is normal for there to be some fluctuation while the numbers are being finalized.  The title co prepares the closing documents and there are errors sometimes - small ones that add up. It is not unusual for the initial closing figures to be off, that is why the lender has to approve the final figures so they are more in line with your actual closing disclosure. 

If you look at the closing disclosure you will see that some fees disclosed to you have zero tolerance and others can have a discrepancy up to 10%.  See this link for a very good explanation by Shanethemortgageman  http://ficoforums.myfico.com/t5/Mortgage-Loans/Understanding-the-Closing-Disclosure-CD-Part-II-of-II...

Edit: for spelling!

[Anonymous]

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@StartingOver10 wrote:

Yes, it is normal for there to be some fluxation while the numbers are being finalized.  The title co prepares the closing documents and there are errors sometimes - small ones that add up. It is not unusual for the initial closing figures to be off, that is why the lender has to approve the final figures so they are more in line with your actual closing disclosure. 

If you look at the closing disclosure you will see that some fees disclosed to you have zero tolenance and others can have a descrepency up to 10%.  See this link for a very good explanation by Shanethemortgageman  http://ficoforums.myfico.com/t5/Mortgage-Loans/Understanding-the-Closing-Disclosure-CD-Part-II-of-II...

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Thank you StartingOver10! I appreciate the explanation. I have been pretty good at keeping up with the mortgage process, however, I have been lost when talks of title come up. Our LO did say that the lender had to verify some of the costs outlined by title, so I guess we will wait and see what everything comes in at.

Thanks again!

[Anonymous]

Ask your LO what has changed from the Closing Disclosure to the cash to close figures that he is looking at.

[Anonymous]

Mine was up and down. At the end of the day it was pretty close to my original estimate. Up until my LO gave me the final number to wire to the bank, they were all reviewing to make sure it was correct.

I ended up with a $68 check in the mail because there was an error found after I signed and the loan was funded. It's a crazy process :-)

[Anonymous]

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@Anonymous wrote:
Mine was up and down. At the end of the day it was pretty close to my original estimate. Up until my LO gave me the final number to wire to the bank, they were all reviewing to make sure it was correct.

I ended up with a $68 check in the mail because there was an error found after I signed and the loan was funded. It's a crazy process :-)

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Ugh this process is crazy! It's such a headache. I'm really hoping that everything comes in closer to my closing discloure amount. That would make me a happy camper. Just waiting on final word from my LO. We're supposed to do the wire transfer tomorrow morning so i'd like to know my damage pretty soon.