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Contributor
lilibee
Posts: 42
Registered: ‎09-23-2010
0

GFE and Down payment

Is the down payment included in the GFE closing costs estimate? Or is it in addition to???

 

My lender says that yes, it is included but I have gone line by line and I don't see it. I even checked Redfin's interactive GFE and still don't see it! Am I just going cross-eyed over looking at all of these forms and missing something???

 

My closing costs, per my GFE are about 7.5K. My down payment is 4.5k. I just want to know about how much I need to have on hand. 7.5K? or 12K???

 

Thanks!

Regular Contributor
daveskow
Posts: 84
Registered: ‎07-27-2009
0

Re: GFE and Down payment

the down payment  may not be listed  as " down payment " on the GFE ....but look at the  purchase price  and the loan amount listed on the  GFE ...this should represent the  down payment

 

a tip - most lenders  will be ablew to provide something called a Loan cost  worksheet ( other names exist for this ) that  flows much nicer and is esier to understand and follow than the gfe...you might ask for this

 

Best of luck

Dave Skow
Eagle Home Mortgage Seattle
Regular Contributor
sjbuyer
Posts: 142
Registered: ‎06-08-2010
0

Re: GFE and Down payment

You are probably doing an FHA loan, given the small down payment.  With FHA, the upfront mortgage insurance is listed on GFE and is included in the total settlement charges.  However, it is commonly rolled into the loan (check your loan amount on GFE), so you don't have to actually bring that amount to closing.  Subtract the upfront insurance premium, and see if the numbers make sense.

Contributor
lilibee
Posts: 42
Registered: ‎09-23-2010
0

Re: GFE and Down payment

Thanks SJBuyer and Dave! I did receive the worksheet but it still all looked Greek to me! But after really sitting down and going through it line by line by line and then subtracting the credits and adding my down payment, it all made more sense. 

Redfin Open Book Certified
MassLoanOfficer
Posts: 576
Registered: ‎06-02-2010
0

Re: GFE and Down payment

There is also a section of your universal loan application called "details of transaction" . . . it is a little box on the left hand side of page 3. This is a summary estimate- you shouldnt take it as a "too the penny" work up, especially in the beginning. But, it breaks out the major portions of the transaction . . . the price, the loan amount, the mortgage insurance (if applicable), the credits you are receiving (for earnest money deposit, lender, or seller, if applicable), the closing and prepaid cost estimates (ESTIMATES!), and the amount the lender is anticipating you will need for closing. You can ten reconcile these lump sums with the detailed sheets (worksheet and GFE).

 

And . . . ask your lender. Make them explain every number. Twice, if they have to. Or more. This is what they do - dont be afraid to ask again if you dont understand. You are borrowing too much money to be uncertain or unsure - dont wait for closing.

Kelcey Morange, NMLS 85965
MA Lic. #MLO85965.
Redfin Recommended Lender
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