The change impacting the cash to close will be reflected on the Closing Disclosure delivered three days prior to closing. Because the change doesn't involve closing costs, there is no restriction on the amount of the change.
Cash to Close Changing from LE to CloD
Are there set rules on the Cash to Close changing from the LE to the CloD? For example, borrower requests a cash out refinance. The LE discloses in the Cash to Close section that they will be receiving $50,000. We find out prior to closing they want to pay off a loan and receive the leftover money at closing. So the money to the borrower has drastically been reduced. Are the changes in cash to close regulated by certain guidelines?
First published on 11/08/2015