Tomorrow is my closing and there is no closing cost..or so thats what they said?

Question

Tomorrow I am closing on my first home. I was told today by someone in the title company when she called to schedule the closing that I might have to bring an official check. My understand was there is no closing cost and 100% financing why would I have to bring an official check and if so what at amount would I be looking at? The property is for $154k. I believe if it says no closing cost then I shouldnt pay anything. What do you think? This has me really stressed because I wasn't counting on this. Could it be the taxes? What amount would I be looking at? I asked all these questions to the girl and she couldnt answer them till tomorrow! ugh

Thanks in advance

Answer 1

You should already have in your possession a copy of the settlement statement - and that will tell you what (if anything) you have to bring to the closing. It's the bottom number on the left side of the first page.

There is a difference between "closing costs" and cash-to-close. Closing costs are all of the payments that go to everyone who is peforming work on the purchase/loan including brokers, appraisers, lenders, title companies, surveyors, etc. A "no cost loan" covers all of these expenses.

"Cash to close" includes not only closing costs but also items such as:

Real estate taxes that the seller may have already paid, for which your are reimburing them.

Setting up escrow accounts for your own taxes and insurance, if they are going to be included in your monthly payment.

Prepaid interest - with a closing on the 30th you would only have 2 days of prepaid interest, so this would be minimal.

Take a breath and wait and see the facts before panicking. The person from the title company might not know the full facts, so don't let them alarm you. Tell your loan officer that you want a copy of the settlement statement tonight, or the first thing in the morning - and review it closely. Your realtor should be able to assit you in interpreting the statement (as long as they weren't the ones who referred you to the loan officer). If not, feel free to contact me and I'll review it with you and explain the facts. You would likely be able to push the closing until at least Friday (unless your purchase agreement expires tomorrow) so don't be bullied or pushed around.

Answer 2

you are getting ready to get screwed big time! the title company has you fianal hud they should be able to tell you exactly what you may have to bring to the table!

if you have no closing costs and the leder has no fees your paying a much higher rate than you should have had to.

this type of closing is called closing with the borrowers back against the wall very few borrowers will walk when things arent what they where supposed to be!
noone should go to closing without having the lender go over the entire hud a few days before the closing!

be prepared for the rate to be higher and fees to be higher.
loans that have no closing costs almost always have hadd the rate raised to cover the closing costs. its called yield spread!

call you loan officer they are the best equipted to spell this out for you! something doesnt sound right about this its common for someone to give you a copy of your final hud ahead of time and go over it with you!

if you find anything wrong with the hud do not sign! they will be forced to fix it! sounds like your about to be taken to the cleaners!

Answer 3

shoot me an email if you have any questions but 100% fin doesnt mean no closing costs. the maximum origination cannot exceed $9,200 and some change generally around 5.99% of the loan amount. maybe there really are giving you a freebie but i doubt it.

also the seller cannot pay your prepaid taxes or insurance and its the end of the month with would make that less in interest. but call your broker and get a closing statement from title or escrow ( called HUD1 form)

Answer 4

Your loan officer gave you (or at least was required by law to give you) a GFE, or good faith estimate when you started the loan process. It should have outlined how much you'd probably have to bring to close.

Ask your Realtor to explain it.