My disclosures are scary

[jamevfan]

I recieved my disclosures which for one has the amount of the loan as 289,000 after the design center the actual cost of my loan should be around 267,000. My Down payment is 3.5% plus closing costs which totals about 17,000 needed at closing (the lender is paying title fees ) after these are paid at closing what will be the actual amount financed? My disclosures are estimates the LO says they shoot for high approvals and lower it to the correct amount when they receive the design center paperwork and said this is just preliminary. Is this normal?

[Xistaben2]

You should get a revised good faith estimate after the final price of the house is set (after design).

You then have the final price of the home, subtract your 3.5% down payment straight up and that is you amount financed.  Your earnest money counts as a part of that 3.5%, it's just paid up front, so it ultimately doesn't factor into your price minus 3.5% because it's included.

The other numbers are all of the closing costs and prepaid items, title insurance etc.  That all adds up, then you subtract the seller and/or lenders contribution.  Whatever is left, you pay for at closing.

In the end, cash at close breaks down like this - 

+3.5% of the price of the house

+Sum of all of the closing costs

+Sum of all your prepaid items

-Your earnest deposit amount

-Seller/lender contributions 

=Cash needed by you at closing

Hope that makes sense.

[jamevfan]

It makes sense, I will be adding my UMIP to my loan so im adding that and the lender is paying title fees which is around 1900 so i though the closing costs and fees were deducted from the loan in addition to the down payment amount so it makes sense now. Thanks