Costs versus prepaids
Closing costs pay for loan and settlement services. Prepaids and initial escrow deposits fund items such as interest, taxes, and insurance.
Closing Day
Closing costs, prepaids, estimates, and disclosures
The Loan Estimate starts the conversation. The Closing Disclosure shows the final loan terms and closing figures after credits, prorations, prepaid items, and adjustments are applied.
Why numbers move
Tax prorations, title credits, insurance, rate locks, points, lender credits, seller credits, and items paid outside closing can change the figures.
Tolerance rules exist
Some charges generally cannot increase, some have aggregate limits, and others may change with the transaction. Valid changed circumstances can permit a revised estimate.
Review every number
I will compare disclosures and explain changes so closing-day math does not arrive wearing a fake mustache.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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