You will hear a section about lending banks…. Sometimes the methods of calculation are hidden and why they think / think…
Listen to a section about lending banks….
Sometimes hidden are the ways of calculation and why they think / calculate the final numbers.
I have a closing tomorrow for an investor's property he sells in Jacksonville, Florida. During the agreement we signed a credit of the seller to the buyer for his closing costs an amount not to exceed $ 5700 (part of the amount is related to inspection and part of the start for these costs).
In the Closing Statement, the title recorded a $ 5,076.36 credit for covering the buyer’s closing expenses. We contacted them and that's what they said:
The total seller credit could have been $ 5700 according to the contract addendum but the buyer's lender would only allow the $ 5076.37
The buyer's can not get the whole credit
In short, the bank does not allow the buyer to receive the full agreed amount of $ 5700 but only the $ 5,076.36. Net profit of the investor. go figure…?
Depends on the type of mortgage. There are mortgages that the lender requires the buyer to put in some money so they have not approved the whole amount. You could just as well shut down 10,000 and it would only approve 5000.
Maybe it's just calculated by some percentage of the deal's value and then they just have no judgment?
It's probably a typo mistake
How do you explain it?