Cash to closing (loan officer, property tax, credit, fees)

[awestover89]

I'm a little confused about determining cash needed for closing. We were told that we won't have the exact amount needed for closing until a couple days before settlement at the earliest, but I really want at least a general idea of what we are looking at.

Some of the pertinent info:

Closing date is April 25
Purchase price 167,000
3.5% Down FHA
15 year at 3.25%
3,500 Earnest Money already paid
Seller agreed to $2,500 credit at closing

My loan officer sent over two documents that I can use for estimating the closing costs, the GFE with the loan application, and an excel spreadsheet.

The GFE lists $10,310.32 as the total settlement charges, but that includes the appraisal fee and HOI, which we have already paid out of pocket, so the remaining estimate is $9,140.32. Am I correct that the total estimated settlement charges is the total amount due at closing? If so, would all of the following be correct?

1) Subtract the $3,500 earnest money already paid ($5640.32 remaining)
2) Subtract the $2,500 seller concession ($3140.32 remaining)
3) Subtract the seller's prorated property tax credit (estimated at 4200, -$1,059.68 remaining)

It just seems odd that I am coming up with a negative balance owed.

The spreadsheet the loan officer sent me estimates total cost to purchase at 175,000, loan amount of 164,000, 3500 EM, 2500 seller credit, 4200 seller tax credit, 174,200 total paid, $800 due.

So now I am confused as to -$1,000 vs $800 vs $10,300

Can somebody explain what credits do/do not impact cash due at closing?

[FalconheadWest]

You need to get with your lender as he's the only one who can decipher your numbers. For an FHA loan, you have to have a minimum of 3.5% into the transaction. At $167k sales price, you need a minimum of $5845. You already have $3500 for earnest money, so that leaves $2345. Unless you have a minimum of the 3.5%, you cannot walk away from closing with cash. Maybe the $10k number doesn't include your down payment. Why not ask him. You shouldn't be signing papers you don't understand.

[Pfhtex]

Forget the opening disclosures and the Excel spreadsheet. Call your title officer directly and be very nice. Tell her your concerns. She will ask for Lender Fees. She already has the contract and might need several pages from your Loan officer, or better yet the lender's Processor, from the present, not preliminary version of the file.

Your LO should do this for you, but that sounds like an outside shot. Settlement Statement Math can be dicey, as there are credits flying all over that thing. But your title rep/closer is your key.