We are doing a bridge loan to cover the costs of a new purchase. I have a question on the amount we show going to the borrower on the bridge loan.

Lets say the loan on the new home purchase needs $100,000 cash to close from the borrower. They did a bridge loan that after closing costs shows $105,000 to the borrower. The bank is paying the title company directly for the $100,000 that is needed to close the purchase loan that is happening on the same day as disbursement of the bridge.

Since the bank is paying the title company the $100,000 and not the borrower. Would the bridge loan show $105,000 cash to close going to the borrower or $5,000 cash to close going to the borrower and the $100,000 in payoffs & payments?
Last edited by StarCityAbe; 03/01/17 04:47 PM.
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