Home Buying in 10314>Question Details

Nugent, Home Buyer in Staten Island, NY

How much do I need to bring to closing?

Asked by Nugent, Staten Island, NY Fri Dec 7, 2012

I am a first time home buyer and currently in contract. My estimated closing cost is $18,000. The buyer has agreed to a $7500 closing credit. Why is my mortgage broker telling me I need the total $18,000 at signing? Again, I am a first time buyer and don’t have $18,000 in cash after down payment. Is there other options?

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Joseph Runfola’s answer
Hello Nugent, this should be answered by your mortgage broker. If it was not explained to your satisfaction ask again, and again until your understand. Furthermore your attorney should be advising and guiding you. The Federal Real Estate Settlement Procedures Act (RESPA) ensures that the buyer in a residential real estate transaction has knowledge of all settlement costs. Loan closing information must be prepared on a special HUD form, the Uniform Settlement Statement, designed to detail all financial particulars of the transaction. The completed statement must itemize all charges imposed by the lender. You may request to inspect the settlement statement, to the extent that the figures are available, one business day before the closing. These people are part of your team, and are there to assist you, make certain they do!.
0 votes Thank Flag Link Fri Dec 7, 2012
Rule of thumb is be prepared for 4-5% of the purchase price and go to your new home with some cash still in your pocket and a smile on your face.

0 votes Thank Flag Link Fri Dec 7, 2012
Ask your loan officer and or attorney for any necessary clarifications and a breakdown of costs.....
0 votes Thank Flag Link Fri Dec 7, 2012
Closing costs are cause for sticker shock for the consumer. The closing cos number sounds about right. Have your broker/agent review item by item about how you arrive at that number. You should have looked into how expensive it is to close a deal. Also speak to your broker & attorney about the 7,500 the seller offered towards closing fees, and if it can be used to get you theough the closing. Be sure it was put in writing in any case, that you receive the funds either during or after the closing. I wish you a successful closing. As a first time buyer, there is a learning curve in all of this, and its key to have a good broker/agent working with you.
0 votes Thank Flag Link Fri Dec 7, 2012
You should speak with your Realtor and your lender. Your lender should have supplied you with a Good Faith Estimate within a few days of your making your formal mortgage application and if the $7500 in seller paid closing costs was listed in the contract this should have been (and may have been) factored into your closing costs. If this concession by the Seller came about after you received your good faith estiamte then I'm not sure why you would need the full $18,000. In addition I would expect you to have made a down payment which gets credited back to you at closing.

Without having copies of your contract to review the numbers it's hard to know exactly what's going on. Remain calm speak to your lender and ask them to explain things to you, don't be afraid to ask questions and if they give you any attitude simply remind them that your the customer and if they can't calmly explain things so that you can understand them then you want to speak to their supervisor.

Good luck, I hope things work out for you.
0 votes Thank Flag Link Fri Dec 7, 2012
Hello. Money that you were offered as a credit is giving to you after the closing and it cannot be a part of the closing. Unless!!! your Attorney can make a special arrangements with the Seller Attorney and somehow factor the money into the closing costs. In any way, your Attorney should tell you a final figure of your closing costs, not the Mortgage Broker. Also I hope that you were given a Good Faith Estimate of your closing cost ahead of time. You would be aware of the figures.
0 votes Thank Flag Link Fri Dec 7, 2012
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