Home Buying in Just Us>Question Details

Probaby, Home Buyer in Just Us, Atlanta, GA

I will be closing on a house in 3 days. I noticed that the down payment is 1200 hundred dollars more than what was on the good faith, is that normal.

Asked by Probaby, Just Us, Atlanta, GA Tue Oct 6, 2009

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As has been stated below, your loan officer should be able to explain the difference to you but one other safeguard that has not been mentioned yet is the new federal guidelines under HERA (Housing and Economic Recovery Act) that require the original Truth in Lending annual percentage rate (APR) and the final one at closing to be within 1/8 per cent of each other. Items that can trigger a violation of that requirement would be a higher loan origination fee, underwriting fee or other lender fees that were underdisclosed originally. So, if certain items in the closing costs are higher than they were originally disclosed to you, the lender is required to re-disclose to you three days prior to closing. So, in addition to checking the original GFE, you should also take a look at the Truth in Lending form and compare original and final APRs... Thus if here is a signficant difference in the APR, the extra $1200 may be a function of the closing costs. If not, it could be other items not associated with the loan, such as some of the items mentioned below...Hope this helps....Sam Thompson, Home Services Lending, Atlanta....
1 vote Thank Flag Link Wed Oct 7, 2009
Are you speaking of the down payment specifically or the money you need to bring to the closing? If it is the down payment you are speaking of, then it could be that the lender is requiring you put additional funds down due to the location of the home you are purchasing. It could be they just made a mistake. Have you spoken with your loan officer?

If you are speaking of the funds due at closing, your Good Faith Estimate is just what it says.....an estimate. The taxes could be higher or they may escrow more than your loan officer estimated which will increase the funds you need to bring to the closing. There may be a 2 mos. initiation fee from your Home Owner's Association or Condo Association. Without seeing the GFE it is difficult to say. The best things for you to do is ask for an explanation from your lender.

Congratulations! I wish you well with your upcoming closing.

Aleta C. Saunders
Marquis Brokers
678-849-6920
aleta@marquisbrokers.com
1 vote Thank Flag Link Tue Oct 6, 2009
Probaby,

Your downpayment is a small part of the overall structureof your mortgage.

We measure the "loan amount" as a percentage part of the "total sales price."

So do you have an "FHA Loan" with a 96.5% '"loan to value" percentage? if so, then you have a 3.5% downpayment.

Do you have a 95%, or an 80% loan to value mortgage? If so, then, etc. etc. etc.

Are you getting some form of downpayment assistance?

Figure all of this out with your lender and do the math.
Web Reference: http://intowninsider.com/
1 vote Thank Flag Link Tue Oct 6, 2009
Hi Probaby
Please contact your Home Mortgage Consultant for detail explanation but:

First, down payment is a percentage of the sales price. Did you buy a more expensive property than as you were supposed to buy?
Do you mean $1,200 higher than Good Faith Estimate? As its name, it is an estimate.
How long ago was the estimate given to you?
Are you looking at the HUD -1 from the title company?
Anyway, please contact your Mortgage consultant company, they will explain the difference.

Enjoy your new home!
1 vote Thank Flag Link Tue Oct 6, 2009
I hope you aren't using lendingtree.com with no human loan rep to whom you can ask that question. That is about the most basic question your lender could answer. So, best thing to do, since we don't know how your loan is structured, nor did you share a copy of your good faith estimate, call your lender. Golly, they are making a ton of money off of you, the least they could do is answer a simple basic question. What amazes me is why you have to come here to ask that question in the first place. Look at the sale price on the good faith.. then look at the sale price you've agreed to in contract. They might just be different. Other than that, none of us will be able to answer your question.
0 votes Thank Flag Link Wed Oct 7, 2009
Who better than your trusted mortgage rep and agent to answer that?

Hank
0 votes Thank Flag Link Wed Oct 7, 2009
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