Settlement cost versus Closing cost

CS800 · ‎04-28-2015

Looking at my mortgage papers, I saw some terms that i need some explanation from

Estimated cash at settlement from/to borrower

total estimated charges at settlement : $ 20,837

does that mean my closig cost is 20,837?

On the itemization of amount financed, the total is 7162

I nearly fainted on the 20k

Please tell me it's not my closing cost

nuggets321 · ‎04-28-2015

CS 800 !! Ihavent seen that moniker since I was on the "credit cards" boards a few years ago ! Glad to see you on this board There "should" be a small horizontal line that reads something like : "amount needed to close" or something like that on the "good faith estimate" that was included in your initial documents....

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CS800 · ‎04-29-2015

@nuggets321 wrote:

CS 800 !! Ihavent seen that moniker since I was on the "credit cards" boards a few years ago ! Glad to see you on this board There "should" be a small horizontal line that reads something like : "amount needed to close" or something like that on the "good faith estimate" that was included in your initial documents....

I come on here often but I lurk,

The lender is BOA. And I don't see a line that says amount needed to close.

The GFE says 'How much your total estimated settlement charges will be' and it says $20,800..I'm r eally hoping that's not a closing cost.

mynameainttracy · ‎04-29-2015

Ours were 17k so it isn't surprising to me. Keep in mind that number doesn't take into account anything being paid by the seller. What are the taxes like where you are buying?

StartingOver10 · ‎04-29-2015

@mynameainttracy wrote:
Ours were 17k so it isn't surprising to me. Keep in mind that number doesn't take into account anything being paid by the seller. What are the taxes like where you are buying?

^^^True.

It also doesn't take into account any deposit(s) you have paid.

Also if you are getting a FHA loan (I don't remember what loan type you are getting), the UFMIP is listed in the closing costs/settelment costs as an itemized item and that is usually rolled up into your loan so it is a non-cash type expense.

If you have the seller paying title - that is another expense that shows for which the credit isn't shown.

Your LO can go over each cost with you too.

DallasLoanGuy · ‎04-29-2015

There are costs and there are prepaids. lumped together with up front insurance on fha loans to come up with a settlement cost.

you need to go over the forms with your loan officer to sort out the numbers

Retired Lender

CS800 · ‎04-29-2015

@mynameainttracy wrote:
Ours were 17k so it isn't surprising to me. Keep in mind that number doesn't take into account anything being paid by the seller. What are the taxes like where you are buying?

The property i'm looking at, the taxes are 7740 per year.

CS800 · ‎04-29-2015

I'm using BOA and really the LO is clueless that's why i'm on here.

I asked her, is the total estimated settlement charges = closing cost i have to bring? She says hmmm i think so

Then i find out that the upfront MIP is actually rolled into the loan. so 20837 - 7906 = 13k which is still high. I have to ask if they could give a lender's credit of some sort. Some lenders give a $4000 credit towards closing costs.

My interest rate is 3.75% right now and i think they give me 3.85, i can get an extra $1000 off.

Does that make sense?

mynameainttracy · ‎04-29-2015

Are you saying that they will give you an extra $1000 off for taking the higher interest rate?

I can't believe an LO would answer your question like that. The rest of your ride on this plane will probably be bumpy.

DallasLoanGuy · ‎04-29-2015

@CS800 wrote:
I'm using BOA and really the LO is clueless that's why i'm on here.

I asked her, is the total estimated settlement charges = closing cost i have to bring? She says hmmm i think so

Then i find out that the upfront MIP is actually rolled into the loan. so 20837 - 7906 = 13k which is still high. I have to ask if they could give a lender's credit of some sort. Some lenders give a $4000 credit towards closing costs. any lender can give you a credit in exchange for a higher interest rate. and seller can pay some fees too.

My interest rate is 3.75% right now and i think they give me 3.85, i can get an extra $1000 off. that is about right. it changes constantly with the market.

Does that make sense?

maybe you should work with a real loan officer. sounds like you are dealing with an order taker....

Retired Lender