I'm a first time buyer, I just signed that same form with my lender yesterday, I close on new home constructed on Nov 30th, please explain," ESTIMATED CASH TO CLOSE, IS THIS THE AMOUNT DUE when I go to closing meeting?? Or AM I PAYING the ,"ESTIMATED CLOSING COST" amount? Thank you
Love the video, thanks for taking the time to make it. A few questions: 1) Why would the FHA loan interest (3.99%) be less than the conventional loan interest (4.375%)? I would assume the second borrower has a better credit rating and put down a significant down payment. And, these loan estimates were issued on the same day so it is not market fluctuation. Seems like the second guy got a bad deal. 2) How do you calculate the comparison numbers on page 3? For the second example, after 5 years: Principal & Interest = $831.81 x 12 x 5 = $49,908.60 Mortgage Insurance = $21 x 12 x 5 = $1,260.00 Loan costs = ??? = $3,552? (How did you come to this?) Do you not consider the down payment? Thanks
Thanks for watching! 1) FHA interest rates are almost always lower than conventional, but they have much higher mortgage insurance making them more costly. You can see here how FHA rates are almost always lower → www2.optimalblue.com/obmmi/ 2) I'm not sure which point in the video you're discussing, but the comparison tells you what's included (principal, interest, mortgage insurance, and loan costs i.e. closing costs)
Wonderful video! My offer was accepted mid August and I'm currently in final underwriting review. I completed my conditions that were required for the loan and am still waiting. It's taking such a long time. I'm really hoping to close before Thanksgiving
Just to shoot out a couple of ideas for future content based upon my own recent experience (and forgive me if you have and I just have not come across it) but a video on clear to close would be helpful. Specifically the limbo in between the mortgage commitment letter and clear to close. Also, real estate tax credits at closing for the buyer. I got sticker shock when I first saw my original loan estimate's cash to close, but this did not take into account several thousand dollars in real estate tax credits that I would later discover when I got the final closing disclosure.
First-time buyer here and was interested if you would be able to make the same video for a VA loan? I also watched your video for the step by step process of applying online but would like to see it done for a VA loan. Great content and voice, I don't understand why you don't have more views.
I am a to be a first-time home buyer looking for jumbo loans. can you get an example for the jumbo loans in new york state where things are a little bit complicated on the closing cost side and includes mansion taxes and other unknowns.
Whew chileee I had to slow this video down. Thank you sir! Helped me gather questions for both my realtor and loan officer. Thank you a thousand times.
All of your content is amazing and I love your calm demeanor it helps me get through my 12 hour work days!!! I have learned so much you are a true GEM💎
Thanks for the video, just have a question on credit scores. I can see my credit score is 700 on credit karma but I'm worried that it's in reality lower when they pull my score for a mortgage. Is this usually the case?
I’m confused by this statement: 1:28 “The federal government requires that you receive a loan estimate 3 days after you receive a contract on an accepted offer.” From whom? Which of all the lenders that you shop for is obligated to send this loan estimate? Or does this mean that the government requires that the BUYER receives it rather than that the lender send it? Because at 23:28 you say: “If you haven’t seen your loan estimate and you’re under contract, ask for it.” So it’s up to us to ask for it or is it a requirement for them to send it? If the latter, which lenders are obligated to send it?
This optimal title insurance seems to be just an attempt to make money off of borrower. Title company should be providing guarantee on the title? What am I missing?
Our team is licensed in OH, TN, and FL at the moment. If in another state, I can connect you with a lender I trust. Text #apply to 937-358-6542 and I can connect you :)
Please forgive me and I know this is audacious, but your math doesn't make sense to me. Can you please explain it to me? You said that 3.5% down on the Ohio example is $9,100. You got that number by doing $260,000 x 0.035 since the client put down 3.5%. That does equal $9,100. You also said that the PMI Mortgage Premium has a one-year upfront cost of $ 4,391 which is listed in the video in section B, and that this cost comes out of the down payment, which was listed under the "Calculating Cash to Close" section. So I'd take the 3.5% down payment which was $9,100, and minus $4391, which represents the $4,709 left for the "Down payment" you listed in the video (you had $4710, but I assume everything was rounded to the nearest whole number). This makes sense as well. The part that doesn't make sense to me is why the PMI Mortgage Premium is subtracted from the down payment, but the "Total Closing Cost" number isn't adjusted to reflect that this cost was paid. As it stands, the PMI Mortgage Premium is still being charged (even though you said it was paid) and makes the Total Closing Cost $10,422, but shouldn't the total cost be subtracted by $4,391 since that is covered by the down payment?
I'm happy to clarify, it can be confusing. Section B has the MI Upfront Premium. That plus the down payment is $9,100 which is the Minimum Required Investment from the borrower or "down payment'. In an ideal world, the Closing Costs Financed would read -$4,391 (the exact same as the MI Upfront Premium) and the Down Payment would read $9,100. That makes more sense to me on paper, but both ways are technically accurate. Also, to your closing cost point: No, the total closing costs represent all costs of the loan before credits or pre-payment. Otherwise, total closing costs could be manipulated by lenders to make it seem like a loan costs less. Estimated Cash To Close is what you're looking for to understand the net figure.
thanks for the info. Kyle. A quick question, how to find out if the conventional or FHA loan will allow me to do extra payment toward to principle? such as biweekly payments... Could you please do a video on this topic? thanks in advance.
Thanks for your content. I learned a lot from this video and it made me understand the process better. However, I have a few questions. Are you able to negotiate fees? Right now I am shopping for a re finance and I feel like I am getting charged too much in fees. I am working with quicken loans and I'm seeing some fees that seem unnecessary. For example; processing fee, underwriting fee, credit monitoring service, title- abstract or title search, title- express mail/ courier fee. I do have my rate locked but everything is still in process and I can still back out of it. Any help is appreciated. Thank you.
Hi! Everything should be communicated. You will be signing for something that will change your life, so if you think you need to negotiate, do so. Best of luck!
Thank you fo your video. I have questions regarding points vs credits. I requested the lender to lock my rate. The explaination for the credits was to get the lower rate otherwise the 3.375% would be 3.5. what I'm questioning is that I don't have any lender credits. Btw, this is a conventional loan. Please help
I’m. Interested in a USDA loan in the Statesboro GA area and I wonder if you could recommend a good loan broker that can help me navigate this journey. I have watched your videos and you do such a beautiful job explaining all the things I didn’t know and I now realize how much I need someone like you. Your videos are such a blessing. Thank you so much
Closing date is 20 days away and I constantly just review this lol to make sure I am believing my closing cost. Got wonderful deal and this helps so much as a first time buyer🙏🏾🙏🏾
Would LOVE a follow up to this specifically about closing disclosures. What to look out for and how it might’ve adjusted from the estimates. Maybe I missed it in your feed but this video was a great help! Thanks!
Hi, Kyle! Thank you for all your helpful videos. I want to ask about Origination Charges. Is it Okay to see there "Broker Compensation $4, 250"? I did not see this in the first Loan Estimate that we received. I want to ask our broker about this, too, I just don't know how to ask him in a right way.
You're welcome! I'm guessing if there is that much in Origination Charges, there is also a Lender Credit you're receiving somewhere near the bottom right of page 2
Hi Kyle, I tried to secure a loan twice and my obligated/hired hours of work was questioned. I am hired to work part time, but have always worked up to 80 hrs/two weeks. I do enjoyed the flexibility in my schedule and I make more now than when I was obligated to work 72 hours in two weeks because I only pickup extra shifts that have bonus attached plus I get to be home with my kids more and don't have to worry about who will work for me when I have an appointment etc Now that I am ready to start the process of buying a home, I'm afraid that broke will not take me serious when I tell them my "based hours" although my paystubs and w2 shows a higher income than my based income. How do I get a broke to speak to an underwriter when they disqualify me because I am hired part time? I could easily request a full time employment, but will make me feel miserable and I will not get the bonuses I'm getting now from picking up extra shifts plus I won't be able to be home with my kids on the days that I want. I really don't want to give up my freedom, but we need a bigger home. What has been your experience working with people with similar situations like mine?
This has been very helpful! Thank you! One question I have is, does the buyer pick the Home Owner's Insurance, Title, etc? I know you had said that the buyer can only shop for Section A but who's to decide which home owner's insurance company we're going with or if they're any good?
The buyer can shop more than Section A. Section A is only shopping for lender specific costs. Home owner's insurance, title, warranty, inspector, etc can be chosen by the buyer
I'm not a fan at all. They usually charge a lot of points and are very push sales people. I personally would work with a mortgage broker. For instance, I work as a broker and can actually use Quicken Loans with my clients. Since we get wholesale rates, we can get lower rates than if you go to Quicken Loans directly. But, most lenders brokers work with have lower rates/costs than QL
Win The House You Love I had my quicken loans guy send me over this exact break down for two different houses. In that first section of the closing “loan cost” where yours says $0. They are charging us $8000.00. Can my husband and I work with you??
Thanks for your videos Kyle! So is the closing costs included in the loan as well? For the Tennessee home buyer, the sale price was $196,000 and the loan amount was $166,600 leaving a difference of $29,400 but the closing costs were $32k. Also, would you have any brokerages to recommend for kansas and Missouri? My wife and i live in Kansas but work in Missouri so we're contemplating moving to Missouri
Thanks for watching! Closing costs are almost never included in the loan unless you're using a USDA loan with a special circumstance or a refinance. For the TN scenario: the down payment is $29,400 and the total cash to close is $32,068. The cash to close is the final bottom line number due from the borrower. Here's how the cash to close works: All Costs (down payment, closing costs) - All Credit (seller credit, tax credit, earnest money) = Cash To Close. Go ahead and fill out this form and I can connect you: www.winthehouseyoulove.com/referral
@@WinTheHouseYouLove thank you SO much for taking your time to response. We've decided to save for another few months and once we're ready, if we have no lender yet, will fill out the form for your reference. Thanks again!
No. Percentages might be a good estimate to help give you a ballpark number. But closing costs are individual fees that aren't directly connected to the purchase price or where you live.
Usually, the Loan Estimate is a bit higher than the Closing Disclosure and the initial Closing Disclosure is a bit higher than the finalized Closing Disclosure.
I used to be called a GFE across the country until October 3, 2015 when the CFPB changed the form to a Loan Estimate. GFEs are only used for reverse mortgages now.
Wish I had found you before I started down the road with my FHA loan. Still trying to grasp difference between my listed closing costs and cash to close!
Where does the 32,068 come from? Who or how is that amount paid for? I'm confused 😕 the buyer put down his dp of 29,400 does that mean the buyer also pays 2668 cash in addition to his DP? Lol help 😅
$32,068 is the money the buyer has to bring to the closing table. It's the sum of all the items above it. Yes, $29,400 down payment + $2,668 net closing costs = $32,068 total due
