Skip to main content

Huge Difference Between LE and Final Closing Cost Details

I'm financing new construction and have a 15k seller credit, 3.3k deposit I made on options/additions, and a 7.5k earnest deposit.

I have a loan estimate from 7/16 with a loan amount of $658,833. Estimated closing costs are $56k and estimated cash to close is $38k. It should be noted that this cash to close doesn't include my 7.5k earnest deposit, so cash to close should really be about 30k. I mentioned this to my loan officer twice and he said it would even out at closing and said 30k was the right number.

Today I received the final closing disclosure and there's a 15k increase in cash to close, and now the closing cost details include my 15k seller credit (applied towards origination charges, which wasn't where he'd applied it before, but ok) and the 7.5k earnest deposit I made - but omitted the 3.3k deposit I'd already made.

My biggest area of concern: the loan estimates all calculated estimated escrow prepaids for insurance/taxes/Mello Roos at 3 months, 2 months, and 2 months respectively. The final estimate calculates them at 3 months, 8 months, and 8 months, respectively. 6 months of escrow prepaids is a significant difference.

I'm also confused with taxes: it calculates property taxes (at 6mos) under prepaids - $3971, then under initial escrow payment it lists property taxes again (calculated at 2mos) - $5294.

Then, separately, there is an adjustment on the summaries page that shows $7158 for county taxes (8/2024 thru 7/2025).

The net result here is an addition of $7158 in taxes, another $4349 in escrow prepaids (totaling $11.5k) and then the omission of my other 3.3k deposit.

I have purchased 3 houses and I have never seen such wild fluctuation from a LE and final cash to close, and I'm not comfortable with it. I was expected to pay 30k cash to close based on a LE from last week and now I'm staring at 45k.

Of note: 20k right off the bat is my VA funding fee (secondary entitlement).

I politely wrote back to my loan processor and the senior loan processor and asked to see a new loan disclosure that included the 15k seller credit, my 7.5k earnest deposit, *and* my 3.3k deposit all on the same worksheet - I've asked multiple times. I also asked to see a disclosure that aligns to the 3/2/2 months of escrow prepaids instead of 3/8/8. Am I being unreasonable?

Should be noted that the builder is Lennar and I'm using their in-house financing. Zero reason there should be this kind of disconnect. Thoughts?

submitted by /u/220solitusma
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1echxls/huge_difference_between_le_and_final_closing_cost/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

How to Avoid Property Scams in Delhi?

Here’s What You Should Know! Commercial Real Estate (Non-Residential) Buying a property in Delhi can be tricky, especially with all the stories about scams and shady deals. If you're in the market, here are some tips to keep yourself safe:Double-check the documents: Always verify ownership and approvals. Don’t just take someone’s word for it—look at the actual papers. Do your homework on prices: Compare similar properties to avoid overpaying. A little research can save you from a bad deal. Work with trustworthy people: Whether it's a seller or an agent, go for someone who's transparent about pricing and the process. If they’re dodging questions, that’s a red flag. Ask for reviews or references: If someone you’re dealing with has a good track record, they won’t hesitate to share testimonials or connect you with previous clients. I’ve noticed that some property services have started focusing on things like verified listings and clear communication, which makes the whole proc...
Post a Comment
Read more