Closing Disclosure Confusion

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  • #46905
    Pearl609
    Member

    Okay so… I received my CD yesterday evening and I was so excited to have it, I didnt go over it thoroughly until today.

    When the title company called me, apparently the numbers were wrong due to sellers concession being $986 more than what it should have been AND Citibank asked if my Assests were verified (nobody asked me yet).

    So being proactive I just went ahead and emailed my CC my current bank transaction history to prove I had the funds for closing.

    Anyway… my seller is giving 10k and I made a 7,500 deposit, yet on my CD the loan estimate column shows the 10k seller contribution but the final loan column does NOT show the contribution, instead it shows my 7500 as a credit.

    SO WHAT HAPPENS TO THE 10K (or 9,014) from the seller?? Why am I not being given credit for that towards cash to close?

    #46913
    southflorida
    Member

    It can be because the seller contribution is being used for interest buydown (which the bank would get those funds). The seller contribution does not decrease your cash to close

    #46924
    Pearl609
    Member

    @southflorida I understand that it doesn’t bring down my cash to close because its calculated in the buy down BUT I do not see it in the calculations on my Closing Disclosure.

    So at the time of my bank app here’s what the loan estimate shows on the CD (not my actual numbers except deposit and seller):

    Total closing costs (J): $15,000
    Deposit =$0.00 (which was WRONG)
    Down payment/funds from borrower: $12,000
    Seller credits: -$10,000
    Cash to Close: $17,000
    WHICH MEANS… total closing plus downpayment = $$27,000 then minus seller credit of 10,000 for a total cash to close of $17,000

    ESTIMATED PAYMENT AMOUNT = $1,100

    BUT ON THE FINAL SIDE IT READS:
    Total closing costs (J): $15,000
    Deposit = $7,500 (which is right)
    Down payment/funds from borrower: $12,000
    Seller credits: $0.00
    Cash to Close: $19,500

    ESTIMATED PAYMENT AMOUNT = $1,100

    So where is the seller credits if my payment is still the same in both situations?

    #46925
    JHarris981
    Member

    @Pearl609 I’d contact the closing attorney to get some clarification. Do you have that person’s contact info. He/she should be able to clear this up.

    #46927
    Pearl609
    Member

    @JHarris981 nope I was never given any attorneys information. I sent 2 emails to my CC and my MC and nobody is responding!!

    #46929
    JHarris981
    Member

    @Pearl609 you can speak with your local NACA office’s administrator to find out who NACA’s preferred settlement agents (closing attorneys) for your area. The administrator might even be able to tell you who is handling yours. If the administrator can’t tell you then I’d call each settlement office to find out which one is working on your file. You could also try finding this info out from your office manager. Or check your escrow deposit check. I’m sure it has cleared. See who signed the back of it — it should list the name of the closing attorney’s firm. Hopefully one of those options will put you in touch with the attorney who can provide answers regarding the amount you need to bring to closing.

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