Unexpected Increase in Cash to Close Just Before Settlement

We’re about a week away from closing, and our loan is still under review. Recently, our loan officer emailed us an unexpected update indicating a $7k increase in our cash to close amount, instructing us to wire the funds by Monday morning. When questioned, the loan officer admitted to being unsure about the reason for the increase and has not provided a revised closing disclosure for clarification. This abrupt request is alarming, especially without a detailed explanation or new documentation. I’ve informed our realtor and intend to consult a real estate attorney first thing Monday. Our initial loan estimate and closing disclosure were nearly identical, so this significant change is quite shocking. Has anyone else experienced similar last-minute adjustments without proper documentation?

Have you compared the most recent loan estimate with the previous one? Sometimes details are overlooked that could explain the discrepancy.

Sawyer said:
Have you compared the most recent loan estimate with the previous one? Sometimes details are overlooked that could explain the discrepancy.

We compared both estimates where we initially saw a $1k change. This latest figure was communicated via email without accompanying paperwork, leaving us unable to pinpoint the source of this new number.

It’s concerning that your loan officer doesn’t understand the change. It’s possible there was a change in your loan terms, and they should clarify. Always remember, you have the option to switch lenders if things seem off.

@Journey
The loan officer stated that nothing had changed, so the origin of this new figure remains a mystery. She’s pressuring us to wire the funds by Monday, but without understanding why, I’m hesitant.

@West
Could the increase be related to prepaid taxes or homeowners insurance? These are typically paid upfront.

Florian said:
@West
Could the increase be related to prepaid taxes or homeowners insurance? These are typically paid upfront.

It’s possible, but such a significant increase should still be reflected in a new closing disclosure, which we haven’t received.

@West
Do NOT wire any money yet. This could be a fraud attempt. Always confirm payment details directly with your escrow or settlement agent by phone, and ensure all communication is legitimate.

Make sure to verify all details over the phone using the number you have on record, and ideally, meet in person to confirm the legitimacy of the request. The urgency and lack of documentation could be signs of a security breach.

@Zephyr
Agreed, I’m planning to make those calls first thing Monday. The situation is quite stressful, especially with an interstate move pending.