Over Estimated Closing Costs... Need Advice
We are supposed to close escrow today at noon PST. That's two hours away...
The problem is my mortgage broker over estimated closing costs by $1,577.00
The purchase and sales agreement has the seller paying 3% of closings on a purchase price of $148,000.00 .... estimated closings $5500 = $153,500
Actual cost at closing = $151,923.00
How can we go about getting back the $1577.00 over paid on the loan since it is illegal for seller to pay cash back at closing?
Thanks in advance,
Aaron H
At closing they cant, they can on the street corner but I did not say that.
Now the correct answer is to get the lender to redraw the papers, however that costs 100 to 300 bucks and will take a few hours to get done, will postpone the closing.
[addsig]
Sounds like you may have to get a re-draw on the paperwork i mean that is the correct way and most flaw free. I dont see how they over estimated closing costs, the Good Faith Estimate should match the HUD at least mine do. But a re-draw is probably what you need to do and postpone the closing till tommorow unless the lender is rapid.
[addsig]
My first thought would be to contact the mortgage broker and discuss this with them & then contact the closing company to advise them of the error.
Make sure you understand that this is a correct understanding on your part with your mortgage broker.
[addsig]
Is there any way to get this applied to the principal amount of the loan?
After all the agreed upon, contracted, sales price for the house was $148,000.00 and anything above and beyond would go towards closings...
Thanks for all your help.
Yes, happened to me once. HUD foreclosure, and HUD was paying a 5% concession toward closing costs. The lender did not allow some costs to be seller paid, so the excess (about $1500) was applied to the mortgage itself and the lender recast the loan for the lower mortgage amount. Took about two hours for the lender and the settlement attorney to get a final HUD-1 with all the new numbers.
I've had a similar problem occured...excess money at closing above closing costs paid by seller...The person that was selling the house was all about "only closing costs" so we told them they can wait afew more days for closing so we could buydown the rate with the extra money, or just include it as a principal reduction...they included it as a principal reduction.
Too bad nobody told the person who was preparing the settlement what needed to happen...they could have put up the alert before they completed the paperwork. 2 above posts are the answer so that it is clean. I have had papers redone while I sat at the table, but nobody prefers that!
Your replies are very much appreciated. I am heading to the closing table right now... my mort broker is checking with the lender on paying down the principal with this and if that is not acceptable then we will have to re-draw the loan papers.
Thanks again
[addsig]
Aaron,
How did your situation get resolved?
The deal closed as sceduled... actually about an hour and a half late, but it still closed. I would like to tell you how we resolved it but it's classified *wink, wink*
Thanks for all the input..
[addsig]
Aaron,
How does "it's classified *wink, wink*"help anybody else? What's the rest of the story?
It was sarcasm to direct the reader to believe that we got paid from the seller after closing...
However, we actually were able to re-draw the docs and close the deal the same day.
[addsig]