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Closing Cost

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Established Contributor

Closing Cost

At what point in the loan process will I receive solid #'s on closing costs? I received a estimate but I know the property taxes are not correct on the estimate. My realtor warned me that if I went with a lender offering a lower rate that at the last minute they could change the rate or increase the cash to close (which I do not have). 

Starting Score: 6/17/15 EQ: 589 EX: 593 TU: 579
Current Score: 5/22/16 EQ: 703 EX: 697 TU: 713
Goal: 700s by June 2016
Message 1 of 7
6 REPLIES 6
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Frequent Contributor

Re: Closing Cost

Asking the same question I just sent an email to the sale rep so she can get accurate figures. I assume you can also call the county tax assessor for that area to get the correct rates......................

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 2 of 7
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Moderator Emerita

Re: Closing Cost

The whole purpose of the Loan Estimate is to give you accurate figures. The reason those new rules went in place by the CFPB in Oct 2015 was to prevent surprises at closing.  

 

However, the LO can only work with the information that they have about the property. If you are having a property built the big unknown is your property taxes so the LO's will use an estimate based on sales contract price. This estimate is usually a little high, at least here, so you don't get a big surprise when the tax bill comes in.

 

I haven't seen big differences from the LE to the CD (Closing Disclosure) at all, but the LO's are experienced and for the most part the properties have been built already and not new construction. 

 

Have a frank discussion with your LO to see if there is a possibility of large differences between now and closing. I would be surprised. 

 

The information that should be accurate is the lender info.  

The information that comes from 3rd parties (title co, survey co or any third party vendor) is an estimate until the LO gets the price from the 3rd party vendor. This is done upfront when you have a contract and a closing attorney or title co selected already. 

The government fees are well known and just a calculation. Who pays them is determined by the contract. 

Message 3 of 7
Moderator Emerita

Re: Closing Cost


@lmscangel17 wrote:

At what point in the loan process will I receive solid #'s on closing costs? I received a estimate but I know the property taxes are not correct on the estimate. My realtor warned me that if I went with a lender offering a lower rate that at the last minute they could change the rate or increase the cash to close (which I do not have). 


I forgot, do you have a property under contract?  

 

Have you received the official Loan Estimate?

 

Is this property under construction or is it already built (resale type)?

Message 4 of 7
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Established Contributor

Re: Closing Cost

We are under contract. I did receive a estimate before submitting my application with the preferred lender. I'm assuming they had the property address as they received my contact info and purchase price from the sales agent. It is new construction that was completed in November. He did note that property taxes were estimated on the sheet I received but the monthly property tax (escrow) was a little over $50 less than the quotes I received from 2 other lenders.

Starting Score: 6/17/15 EQ: 589 EX: 593 TU: 579
Current Score: 5/22/16 EQ: 703 EX: 697 TU: 713
Goal: 700s by June 2016
Message 5 of 7
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Moderator Emerita

Re: Closing Cost


@lmscangel17 wrote:

We are under contract. I did receive a estimate before submitting my application with the preferred lender. I'm assuming they had the property address as they received my contact info and purchase price from the sales agent. It is new construction that was completed in November. He did note that property taxes were estimated on the sheet I received but the monthly property tax (escrow) was a little over $50 less than the quotes I received from 2 other lenders.


Hopefully he would have received a copy of your entire contract because it shows who pays what so your LO can put together an accurate estimate. The $50/month reduction is property taxes should be clarified with him.  Our tax assessors office has a tax calculator right on each property record so that a more accurate property tax calculation can be determined based on sales price and homestead information. Not all tax assessors offices are equipped with this calculator for the public. It is worth a discussion with your LO. 

 

Because it is new construction, check your contract to make sure all the fees from the builder that you have to pay in the contract are notated in the LE. If so, then you can relax a bit.  Smiley Happy 

Message 6 of 7
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Frequent Contributor

Re: Closing Cost

I got my FINAL, 100% numbers on my Closing Disclosures a few days before closing. They were off by a small amount from my Loan Estimate, but not too bad. It was lower, because my title policies were originally over estimated. I was told the final numbers had to come from the title company after the clear to close was given.

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