Thread Options
#2204353 - 01/29/19 09:53 PM Seller Credits up to an amount on purch contract
julesbok Offline
Junior Member
Joined: Mar 2014
Posts: 47
OK
We have a new loan application for a bridge loan to purchase a new personal residence and the purchase contract states that the Seller will pay "up to $9,500 in closing costs, points and prepaids". The total of all closing costs etc for this deal is less than that figure.

In the Calculating Cash to Close box on the LE, do we list the total $9,500 on the Seller Credits line or only the total amount of all closing costs on the Seller Credits line to offset that lower figure? If so, then when we get the final figures for the CloD, can the Seller Credits figure be updated to reflect the actual total, assuming it will still be below the $9,500 maximum listed in the purchase contract.

I was not able to find a previous thread on this specific issue.

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2204361 - 01/29/19 10:40 PM Re: Seller Credits up to an amount on purch contract julesbok
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
Yes - seller credit are not subject to any tolerance tests.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2204368 - 01/29/19 11:03 PM Re: Seller Credits up to an amount on purch contract julesbok
julesbok Offline
Junior Member
Joined: Mar 2014
Posts: 47
OK
Thanks Randy!

Just to be clear - list the Seller Credits figure to offset whatever the total closing costs are on the LE and then adjust it for the final figures on the CloD since in all likelihood they will be less than the "up to $9,500" figure?

Return to Top
#2204372 - 01/30/19 12:28 AM Re: Seller Credits up to an amount on purch contract julesbok
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
Correct.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2204397 - 01/30/19 02:09 PM Re: Seller Credits up to an amount on purch contract julesbok
julesbok Offline
Junior Member
Joined: Mar 2014
Posts: 47
OK
Thanks again!

Return to Top