More and more buyers are wiring an incorrect amount for closing. After inquiring the buyer often says that is “what my lender told me to bring.” What the buyer is really saying is “this is the number I saw on the Closing Disclosure Statement that the lender provided at least three days prior to closing.” While TRID requires the lender to provide the Closing Disclosure Statement at least three business days prior to closing, the Closing Disclosure Statement is not final and is subject to change. The lender is afforded certain allowances that do not require re-disclosure of the preliminary Closing Disclosure Statement. Often the lender may have incorrect or incomplete recording fees, homeowner’s association fees or title costs on the preliminary Closing Disclosure Statement which would render the number inaccurate. Thus, the final amount needed for closing often changes from the issuance of the Closing Disclosure to the issuance of the Combined Closing Statement.
The closing attorney does not know the final number until the closing package is processed. This is why closing attorneys want loan packages days before closing. Therefore, in order to determine how much money your client needs to bring to closing, your client should contact the closing attorney. If the closing attorney has the closing package, the attorney’s office can provide your client with final numbers once the Combined Closing Statement is prepared. If the closing attorney does not have the closing package from the lender, the closing attorney can often look at the lender’s Closing Disclosure and determine if any fees are missing and give your client a good estimate of the amount of money to bring. It is imperative that the real estate agent advise the client that the final closing numbers come from the closing attorney and not the lender. Otherwise, delays may occur if your client is required to wire additional funds at closing.
Historical Fact- Pinckney Street is named for Brevet Brig. General Charles Cotesworth Pinckney of Charleston. Pinckney is considered one of the founders of the American Republic. He fought in the Revolutionary War and served in both houses of the legislature. He is credited as being one of the framers of the United States Constitution. He also served as a delegate to the 1790 South Carolina Constitutional Convention. He was appointed minister to France in 1796 by President Washington. He also ran from President twice as the Federalist candidate losing to Thomas Jefferson and then James Madison. He died in 1825 and is buried in St. Michael’s Churchyard in Charleston.