06-22-2011 12:09 PM
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???
06-22-2011 03:32 PM
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
Eagle Home Mortgage Seattle
06-22-2011 04:00 PM
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.
06-22-2011 11:21 PM
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.
07-15-2011 10:06 AM
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.
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