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GFE Settlement charges not equaling what the lender says I bring to closing

I got my GFE on 4/21/2014 and now the day before closing, they said I need to bring $1300 more than what is showing on my GFE.  How could this be happening?  I was told by my realtor that the "A+B Total Estimated Settlement Charges" is what I would be paying at closing.
  • April 29 - Atlanta
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Answers (12)

Some items on the GFE say that they can change for example the cost of inspections or surveys.  Others CANNOT change and it says so on the GFE.   I have seen lenders try to use the old forms that did not differentiate between what can and cannot change.  The new forms came out a little over 4 years ago.
  • April 29
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If you would be kind enough to send me the Final GFE along with the initial GFE and any work sheet and i would be more than happy to take 5 mins out of my day to give you and independent honest opinion as to where does this difference come from and if it is even legal. I can be reach via my profile for the free consultation before you go throwing away your hard earn money. Good Luck
  • April 29
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Why is your realtor telling you what the closing costs will be? The numbers should have been disclosed to you at least 3 days before closing if any changes were made from what you were originally told.
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Profile picture for Outer Banks N C
 The earnest money is indeed supposed to be debited from the total amount needed to close, correct?

Yes, correct. It is looked at like part of your down payment.
  • April 29
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Profile picture for SandyCoils
Eric, I will do just that!  Thank you everyone for your input.  Can you answer another question:  The earnest money is indeed supposed to be debited from the total amount needed to close, correct?
  • April 29
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Profile picture for Michael Marroquin
Many realtors are very good at estimating closing costs, and even use their escrow officer to estimate them and provide a net sheet (that is best).
If the agent, loan officer and escrow officer don't work together on a regular basis, they may not have the best communication during escrow.  
Take a look at what is in the GFE, and take a look at what is in your estimated HUD. What is different?  Chances are there is nothing wrong. Perhaps property taxes were not included in the GFE, or pre-paid insurance etc. Did you change your loan terms or loan type? There are many things that it could be. Just take a look at your final HUD go over it with your agent or your loan officer or both.  As someone else mentioned, it is an estimate for a reason.  What you should know for sure up front is how much you lender fees are (loan origination, underwriting, processing etc. - however worded), credit report fee, appraisal fee. Everything else is estimated - title insurance, escrow, recording, transfer fee, pre-paid insurance and property taxes, you may have HOA transfer fee and a couple of months paid upfront.   Many, many estimations.  The important part is that everything is explainable in the end and no one is trying to take advantage of you.  I'm sure if you call your loan officer they will be happy to go over it with you.
  • April 29
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If you are in an area where property taxes are very high or your insurance policy was much more expensive than estimated, your cash to close can increase. Let us know please after you review your HUD1 so others can view this thread and the resolution.

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Profile picture for SandyCoils
When I asked them, they told me to refer to the Loan Scenario Worksheet.  Well, that isn't 100% either, because it doesn't show the seller's contribution to closing costs nor are my pre-paids debited from the final amount.  Lender said the GFE doesn't include down payment, seller contribution, or earnest money.  How can it be called a Good Faith Estimate if the total can be off by $1300?  Doesn't sound like any kind of estimate I know of.  Closing is tomorrow and I am still waiting on the HUD-1 before I wire ANY funds!
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Why is your lender not explaining this? Depending on the size of the loan, swinging and missing by 1300 is a big whiff...
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It could be down to pro-rated property taxes and HOA dues and it could even be your first month's mortgage payment in advance. Your lender should be able to give you a detailed breakdown. The GFE covers lender related costs.
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Do you know which fee's are different. The taxes and homeowners are always estimated, all other fee's should be the same as the GFE.
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Profile picture for Outer Banks N C
You need to ask your lender, we would not know but it is not uncommon as things are discovered. It is called an estimate for a reason.
  • April 29
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