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Understanding GFE help

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SantanzChild
Valued Member

Understanding GFE help

So just to make sure I understand what is going on here. My total out of pocket on this is going to be 3177.62?Or is it going to be something else and I just dont understand what I am looking at....  

 

Interest Rate3.125%
Annual Percentage Rate 3.733%
Loan Amount$120,946
Points 1.250 / $1,512
Settlement Costs $6,773.22
Down Payment$0.00
Third-Party Fees $751.80
Lender Fees $2,642.37
VA Funding Fee $2,545.60
Prepaids and Escrow $1,183.45
Credits to Closing Costs  Minus($1,350.00)
Cash Due at Closing
$3,177.62

 

I already have $1000 in escrow for earnest money and the VA funding fee is being rolled into the loan.

 

Appreciate the help.

Message 1 of 6
5 REPLIES 5
BaileyMae
New Contributor

Re: Understanding GFE help

I'm going FHA and my lender gave me a Fees Worksheet that is easier to follow than my GFE. I'm new to this but I believe you can subtract the earnest money from cash due at closing. If the funding fee is rolled in that can be subtracted too I think.

Something that wasn't on my fees worksheet or GFE was tax prorations. How it's calculated depends on how the state pays property taxes but in my case I'll be getting a credit. That could also lower (or raise I suppose) your amount due at closing.

Hopefully someone with more experience chimes in
Lender Pulled Scores(2/2014)

EQ: 750 (same a myFICO) EX: 707 TU: 728
Message 2 of 6
ezdriver
Senior Contributor

Re: Understanding GFE help

That cash-to-close amount includes any money sitting in escrow ... such as you earnest money deposit. Other than that, you got a good handle on it.

Message 3 of 6
ShanetheMortgageMan
Super Contributor

Re: Understanding GFE help

Yeah what you were provided doesn't make a ton of sense.  A GFE never tells you how much you need to bring in at closing either, so not sure what exact form you got those figures from.


Since VA is 100% financing then you would just need to bring in your settlement costs minus your $1k EMD & any seller credit (is that the $1,350 you listed?).

 

So based on this information your settlement costs are $6,773.22.  Does that include the VA funding fee or not?  Are the points included in the $2,642.37 in lender fees or are they additional?  I have a feeling that the VA funding fee is included in the settlement cost figure, because if you take $6,773.22 minus $2,545.60 then you get $4,227.62 ... which is $1,050 away from what you owe at closing.  Minus your $1k EMD and you are only $50 off.

 

It clearly says cash due at closing $3,177.62 but the numbers are a little tough to read on how it arrives at that figure.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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Message 4 of 6
SantanzChild
Valued Member

Re: Understanding GFE help


@ShanetheMortgageMan wrote:

Yeah what you were provided doesn't make a ton of sense.  A GFE never tells you how much you need to bring in at closing either, so not sure what exact form you got those figures from. This is what the bank called a GFE when filling out the loan app


Since VA is 100% financing then you would just need to bring in your settlement costs minus your $1k EMD & any seller credit (is that the $1,350 you listed?). Yes that is what the 1350 is for

 

So based on this information your settlement costs are $6,773.22.  Does that include the VA funding fee or not?  Are the points included in the $2,642.37 in lender fees or are they additional?  I have a feeling that the VA funding fee is included in the settlement cost figure, because if you take $6,773.22 minus $2,545.60 then you get $4,227.62 ... which is $1,050 away from what you owe at closing.  Minus your $1k EMD and you are only $50 off. Yes this 6773.22 does including the VA funding fee

 

It clearly says cash due at closing $3,177.62 but the numbers are a little tough to read on how it arrives at that figure. And that is why I was asking the question I was doing the math and confused how it was getting there and thus started questioning what I though I knew about what was going on.

You guys seem to have worked through it the same way I had.  The numbers not adding up was what confused me and had me questioning it.  Appreciate the help breaking it down.

 

Message 5 of 6
StartingOver10
Moderator Emerita

Re: Understanding GFE help

OP, here is the very specific required form for a GFE as of 2010.

http://ficoforums.myfico.com/t5/Mortgage-Loans/Understanding-the-New-2010-Good-Faith-Estimate/m-p/73...

 

If the form you have doesn't look like the one in the link, then it is not a GFE. Many, if not all, lenders have a 'worksheet type' form they use until you make offical application. Then they have to supply you an official GFE.

 

Go back to the LO and get an explanation for the numbers that don't add up. Could be just an error.

Message 6 of 6
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