Final closing cost numbers (documents, agent, fees, settlement)
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Closing on Thursday and we still don't know exactly how much to bring to closing! It's Tuesday! Is this normal? Is it done simply to torture the first time homebuyer or is there some other explanation? And something tells me that the closing costs on our good faith estimate don't actually mean that much.
In my area, the closing agent can't put together the final numbers until they get docs from the lender, which is usually the day before everyone is supposed to sign. You should have a pretty good idea based on the good faith estimate, but there will be adjustments for taxes, utilities, any home owner dues, those type of things that are pro-rated as of the closing date. You might want to call your Realtor or the closing agent and find out when the loan documents are expected and if they can compute your side of the transaction so you can be prepared. Some lenders are more efficient than others and will send their documents well ahead of time so everyone has sufficient time to review the figures, but the end of the month is usually very hectic and gets bogged down with loan packages that need to get out by the end of the month.
You must be with Bank of America, lol . I didn't get the actual number until the day of closing. It was about $700 more than the GFE. Luckily, I was prepared because they were BSing me throughout the entire process and I knew to expect some BS until the very end. I would tell anybody, no matter what the estimate is, add at LEAST an extra $500 to that just in case.
I can only tell you the "typical" way it's done here. Keep in mind, we use title companies here, rather than attorneys, to handle the closing docs, etc.
Here you would have had your "pre-HUD" (settlement) statement probably about a week ago. The title companies here have you bring in that amount plus a little "pad" (usually about $200) just in case the impound accounts change a little. After closing, they refund any excess to you immediately.
And you're right, the good faith estimate is mostly to show loan costs. It would be highly unlikely that that estimate done at the beginning is accurate now - there's just too many variables that aren't known until the loan has been processed, insurance has been obtained, inspections have been done, etc.
Like most have said, you can look at your good faith, and consider the fees that can vary. All loan costs, title/attorney fees, should not change.
However, prepaid interest will rarely be what they estimate it to be. If you close on the 15th, you will owe 15 days interest. Close on the 20th, you'll owe 10 days. You always owe 30 days interest on a loan, and that is why you pay through the end of the month, and then you'll skip a whole months payment.
If you're establishing an impound account for taxes and insurance, this can vary by a full month of costs depending on when you fund.
So it's typically just taxes, insurance, and prepaid interest that will cause a variance on your final costs. Unfortunately like everyone has said, there's no real way to have an exact number until it's down to the final couple days for funding.
I have been 2 hours before closing before I was able to get a hard number. It amazes me that things get that close, but it is perfectly normal for you to be 48 hours from closing and still not know.
Closing on Thursday and we still don't know exactly how much to bring to closing! It's Tuesday! Is this normal? Is it done simply to torture the first time homebuyer or is there some other explanation? And something tells me that the closing costs on our good faith estimate don't actually mean that much.
Now that your lender has an actual close date, actual homeonwer's insurance amount, actual taxes, etc. he should be able to give you an estimated cash to close amount within a couple hundred bucks. Give your lender a call.
We don't get HUD 1 until day before close with actual numbers. Sometimes day of closing if we have pushed a closing through quickly. However, our estimate of costs we prepare for buyer are usually higher that actual costs... we hate surprises.
Shellytc
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. I didn't get the actual number until the day of closing. It was about $700 more than the GFE. Luckily, I was prepared because they were BSing me throughout the entire process and I knew to expect some BS until the very end. I would tell anybody, no matter what the estimate is, add at LEAST an extra $500 to that just in case.