I should clarify. They probably are correct, they just won’t look correct. They’ll look like this…
“What the! We have to bring HOW MUCH to the closing table???”
I know, because I get these phone calls. And these phone calls have taught me to warn you in advance, to save you the heart attack.
The closing disclosure is a new-ish regulation from the federal government. In 2015, the Consumer Financial Protection Bureau decided that we need a new form to simplify the way numbers related to the transaction get reported to you, a simplified form that has confused many since it’s implementation.
The problem with the way it reports some fees is that it looks like you, the buyer, are paying for things you aren’t actually paying for. For example, title insurance is most commonly paid for by the seller, but it makes it look at first glance like you’re paying for it, adding several thousand dollars to the cash you think you need to bring to closing.
to help you read your closing disclosure with more ease. If any of you try it out when you’re reviewing your closing disclosure, let me know if you find it helpful.
The second joy of the closing disclosure is that it doesn’t get sent to me, your agent. So if you see it and want to ask me about it, please forward it to me so I can look through it with you.
The third joy of the closing disclosure is that it often delays closing. It has to go out three business days before we can close, so if anything delays the release of the closing disclosure, we may find ourselves sitting on our hands for three days.
But the bottom line is, if at first glance you think the closing disclosure looks incorrect, you aren’t the first. Just forward it to me, call me, and we can get it sorted out together.