- On this video I'm gonna talk all about
the Closing Disclosure or CD,
which is your mortgage settlement statement
and we're getting started right now.
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Hey, what's going on?
I'm Emmett Dempsey mortgage broker
and owner Treasure Coast mortgage here in Port St. Lucie.
And welcome to another video.
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the home buying process,
and some cool things around Port St. Lucie
in the Treasure Coast.
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Okay, the Closing Disclosure.
Okay we finally made it to the end
made it through underwriting and clear to close,
and we're about ready to close on your new home
or your refinance.
Now what is the Closing Disclosure?
and again this is a twin little loan estimate.
And if you haven't watched the loan estimate video,
you can go back and watch that.
It's a twin to a loan estimate
which compares to what was disclosed on the loan estimate
versus what is at the end.
And usually, it should be that the closing disclosure fees
are lower than what was disclosed because
when I was over disclose on the loan estimate initially,
now with the closing disclosure is the settlement statement
that you're going to sign closing.
You might have gotten an initial one electronically,
which starts your three-day wait,
and I'm gonna go into that in a minute.
Now the CD was part of the TILA-RESPA Integrated Disclosures
that were changed in 2010.
Now one of the things that they that they changed
and was they eliminated the HUD-1,
just like the Loan Estimate eliminated a Good Faith estimate
and the truth and lending and combined them,
whereas the HUD-1 is now the Closing Disclosure or CD.
Okay, so the CD is gonna have your settlement charges
what the final numbers are, whereas your estimate
had estimated numbers are
and one of the pages that are on there
is the the comparisons in LE
and I'm going to go into a deep dive
into the CD in a minute.
But I wanted to point out some things
is number one is a three day wait.
The CFPB calls it the consummation sentence,
that's their words, not mine.
So you have to wait three days
before you consummate your mortgage.
So I'm gonna give you an example,
if you wanna close on a Friday,
you got to have it done by Tuesday.
So it's basically a three-day wait.
So if you sell your sign your CD on Monday,
then you can close Thursday,
you know, and so on and so forth and Saturdays do count.
So it's very important when you're planning your closing,
especially if you're you're selling your house
and buying something else,
you're going to really sign your CDs as fast as you can.
And usually for all the lenders that I broker to
they let you sign your CD early before a clear to close,
so there's really not that issue.
So what I'm going to do now is go into
a detailed Closing disclosure,
here we go.
Okay, here is the simple Closing Disclosure.
It mentions a simple loan estimate
that I had in my loan estimate video.
Again, this is a fictitious loan,
it's not real client information.
So basically here is Closing Disclosure.
This form is the statement of the final loan terms
and closing costs.
And compare this document with your loan estimate.
Now here's the the payment information,
Closing date and disbursement date.
Now on a purchase in Florida,
we're a wet funding state,
we usually fund them the same day that we signed paperwork,
but sometimes like just sign one day
and then you'll fund the next day,
depending on what the sellers and buyers are.
But as the closing dates when the paper works are signed
disbursement date is when it funds.
Who the settlement agent is,
you know the phone number that they associated
the property to sell price, etc.
Who you are the borrower, who's the seller,
who's the actual lender?
Again, loan terms, you know, 30 2015,
whatever they might be,
purchase, fix rate, etc,
FHA Conventional VA
or other VA loan it from the lender in the MIC number.
Again, that's from the the the MERS,
Mortgage Electronic Registration System.
That's the (clears throat) MIC number.
Okay.
And again, kind of matches loan estimate,
here's your loan amount, can this amount increase
after closing interest rate principal and interest.
Now and ask that question if it's an adjustable rate,
that answer will be yes,
if it can increase loan amount if it's a you know,
if you know now as far as things that use
a Closing Disclosure is very few negative amortizing loan
but again,
if there is out there eventually
they come back in the market.
You know that question will be yes
at least you'll be in plain language yes or no
will it increase yes or no.
This loan, again had a prepayment penalty
most FHA and conventional loans don't have one,
but this one for an example does have one
I guess it's just so you look at this column
and don't overlook it and say yep, yes.
One is a yes what why is it Yes,
and here's what it looks like.
And then below no
Protected payments,
again, this is a mortgage insurance fall off scenarios
years one through seven months projected to habit
and it falls off you see what your payments will drop to
once it falls off
here is your escrows and again escrows
are not controlled by the mortgage company.
So you can take a look at those.
Again, here's your closing cost and cash close.
And now this is the closing cost details in the sections
match up to the Closing Disclosure section,
a origination that's for us as the broker
and then the mortgage company have a control
over your points application
underwriting fee things here like your appraisal
but it ended up being paid by others
usually paid outside of closing.
Your credit report.
And again these are the final fees on the loan estimate
usually over disclose
and then on the CD that they'll come down.
Services did not shop for basically your title.
Fees or anything like that and it's all just listed
you know one by one so you can see em
and then add up to D A plus B plus C is your total closing
cost your borrower paid your other costs
like your recording fees, your transfer taxes,
who pays what now this over here
that you didn't see on the LE is a seller paid
as you can see what seller did pay.
in Florida they usually pay the the deed stamps
and the owners title
and again now things that we don't know
usually on the other,
especially HOA,
its like HOA
However, their quarterly or sometimes annually or monthly
You know, so you have to kind of settle up
because a seller isn't responsible for the whole year,
only for what they have.
So you can see that they
you know, so you have to pay
your first month of HOA to get current,
whatever your home inspection fee
I guess you had to get one on this loan.
And it shows what the real estate commissions are
in your title insurance is paid for.
I want to show you this here,
you know,
calculating cash to close talks about the loan estimate
the last one that was that was shown to you
and you were scheduled to do 16 cash to close
ended up being a little bit better like 14 cash to close.
So that's kind of what you can compare.
Now this is the the summary.
Credit from the seller,
you know, did about $80 paid by seller advanced
because they paid the first 15 days of that month
so they gotta pay it back to credit the seller back
and usually you'll see what's called tax-perations.
That's big in Florida because your escrow
will have the full amount due for taxes
but you'll get the credit from the seller
for the amount of time that they own the house.
So, a lot of times the loans being cash to close
can be a lot higher because it doesn't have those perations
as well as the accurate adjustment for your
you know, for that.
(clears throat)
So, there's that
And then down here you have
what is a simple demand feature.
Again, it all matches the Loan Estimate negative
amortization
partial payments,
no, you can't make partial payments.
And this is a throwback to the Truth in Lending.
You know, again, they're all combined as part of trade.
Escrow account
For now, we'll have an escrow account.
It shows you what's your property costs over, you know,
the one year initial payment to the escrow
and then your monthly escrow payment.
And then if you waive escrow,
you know that box will be checked
in here's your total payments.
Again, that's a throwback
to the Truth in Lending, your finance charges,
your a your APR,
your final APR compared to what you disclosed
And here's a list of all the contact information
for the broker.
I'm a mortgage broker.
So my information will be here,
and you know, the real estate for the buyer, the seller
and settlement agent and the lender that we chose.
So, and then again, this is where you would sign
you know most of time you e-sign
a couple of days before closing.
Now a lot of what we do,
like you'll assign an initial CD
that will be about 99% correct,
you know, cash or close
before it's what we call balance with a title company.
And then again, that's the structure three-day wait
that we talked about previously in the video.
So you backup if you have any questions about that?
But yeah, so you need to have you know three days,
you know, to before the consummation of your mortgage.
So just, you know, quick rule of thumb,
you want to close on a Friday,
you got to have it done by Tuesday.
So usually, I take care of that three-day wait,
even before we're clear to close,
but you know, you'll get your initial CD,
and then you'll get the final CD.
So you know, how much cash you have to wire,
how much cash you're getting, etc.
So, that's in a nutshell,
and here we go.
Okay.
And welcome back.
I hope that was informative look at the Closing Disclosure.
You know, congratulations on your new home loan.
hopefully I was the one who did have it done for you.
But if you have any different questions about the CD
and other disclosures,
definitely give me a call dempseymortgage.com
Thank you so much for watching
and I'll see you in the next one.