Quote:
Originally Posted by JAYSUN
The seller is paying the Closing. It s rolled into the Loan. Loan is 95%. I asked the Mortgage officer, we are not using a real estate agent. They are the ones that told me since the closing is rolled into the loan that all I needed was the amount showing in my account at the time of closing. A closing of 3000 rolled into the loan and then i find out today that the 3 grand i need to show in my account I have to give them as well.
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Hello, sorry you are having such issues. The paperwork part of purchasing a house IS confusing and can be overwhelming. However, you should be working (lender wise) with someone who can explain EVERYTHING in detail to you and it sounds like that is not happening.
It all depends on how much the purchase price of the house is. For example if you are buying a house for $100,000.00 and the seller is paying 3% of your closing cost and you qualify for a 95% Loan to Value mortgage, here is how it should work.
Your mortgage amount will be $95,000.00 so you have to put $5,000.00 down. (to equal the full purchase price of 100k)
Then there is closing costs, which are usually around $5,000.00 for a loan this size, this includes ALL costs involved with the purchase and obtaining the mortgage to include: Appraisal fee, title fees, lender fees, banker/broker fee, 1 year home owners insurance premium, recording and government fees and maybe added to these could be application fee, credit reporting fee and processing fee. All these fees should be clearly, by line item, shown on the Good Faith Estimate that your lender should have given you.
If the lender allows the seller to pay 3% of loan amount, that is $2,850. ( most lenders only allow 3% of the loan amount, not the purchase amount so I am going to assume that is the same with your lender)
So, if you take the $5,000 closing cost and subtract the $2,850 the seller is paying for you, that leaves $2,150 of closing cost you will be responsible for paying. Add that to your 5% which is $5,000 that means you will have to bring $7,150 to closing.
Now, the part that doesn't make any sense to me about what you said above is that the lender (I am assuming this is a mortgage broker or a loan officer at a bank that you are referring too?) is asking you to bring bank statements to the closing. Verifying funds that you need to close the loan should be taken care of long before closing. That seems very odd to me.
You really need to call your lender with a list of questions and write down all the answers, if you do not understand what they are telling you, ask again and again until you do understand. The last thing you want is a surprise at the closing table.
I am not soliciting anything here but I am a mortgage broker and if you need further help, no strings, DM and I will be more than happy to talk with you at length and go over any of the paper work with you to help you understand it.
I hope the explanation helps!
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House Buying help
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