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I have 2100 excess lender credit and I am being asked to bring 2100 additional money to closing which will be used for principle

by Malwa1990606 from Bolingbrook, Illinois. May 15th 2016 Reply


Standard procedure

May 15th 2016
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Lorne Harvey (lorneharvey)
#81 ranked lender in Washington - 419 contributions

It sounds to me like your loan is premium priced and you are getting back to much lender credit and unable to use it all because the loan fees are all covered. I would inquire about reducing the rate by an eighth or so to minimize the excess.

May 16th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

More info needed.. But, if the lender disclosed a credit based on a specific interest rate, and now the credit being offered is to much, then it cannot be used as "Down Payment" Funds.. it must be applied to the principal.. you could see about using the additional credit to lower the rate, maybe pay for a home warranty, or even pre-pay association fees, but aside from that, if you don't have loan costs sufficient to use up those funds, then it will go to reduce your loan.. but will not have any impact on the necessary funds you need to bring into close.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

May 16th 2016
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Michael Garza (michael.garza@rate.com)
#255 ranked lender in Texas - 21 contributions

Good Morning. I am not sure i completely understand your question. Can you please restate your question so i can be of service. Thank youMike

May 16th 2016
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