Loan Estimate (LE) and Details of Transaction Cash Difference

Often times the cash needed from the borrower to close shows different numbers in 1003's Details of Transaction screen and the Loan Estimate. We recommend using Details of Transaction final cash amount as the final number as Loan Estimate is by design not able to cover all the adjustments and credits that sit outside of page 2 of LE and take account of POC items as credit from the transaction. LE is designed to aggregate all costs from buyer, seller paid and other parties whereas Details of Transaction on a traditional 1003 only outlines fees paid by or credited to borrower.

Specifically, they differ by the following. The numbers shown in orange color are the ones not accounted for.

1003 Details of Transactions	Loan Estimate or Closing Disclosure Sections
a. Purchase price
b. Alterations, improvements, repairs	Shown in Summary of Transaction, if purchase or payoff/adjustment section if refinance
c. Land	Shown in Summary of Transaction, if purchase or payoff/adjustment section if refinance
d. Refinance (include debt to be paid off)
e. Estimated prepaid items	Section F + Section G
f. Estimated closing costs	Section D + Section E + Section H - Prepaid items (Section F + Section G) - PMI, MIP or Funding Fee in Section B - Discount in Section A + Other adjustments/credits in CD's / Disclosures → Summaries of Transaction Section K (outside of page 2 of LE) - Disclosure → Section G's Aggregate Adjustments amount (presented as a positive number)
g. PMI, MIP, Funding Fee	PMI, MIP or Funding Fee in Section B
h. Discount	Discount in Section B
i. Total costs (add a through h)
j. Subordinate Financing	Already contained in Other Adjustments/Credits outside of page 2 of LE
k. Borrower's closing costs paid by Seller	Disclosure screen → Closing Costs Paid by Seller
l. Other Credits	LE's Lender Credits + Seller Credit + all other credits shown in CD's / Disclosures → Summaries of Transaction Section L + Other paid (non seller, non lender) paid closing costs
m. Base loan amount
n. PMI, MIP or Funding Fee
o. Total loan amount ( m + n)
p. Cash from/to Borrower ( i - j- k- l- o )

For FHA streamline refinances with a MIP refund situation, enter "MIP Refund" in Details of Transaction → Other Credit section. This refund will show in CD's Payments and Payoffs section.

In Q1 2020, for 1003 Details of Transaction, line b (Alterations, improvements and repairs) and line c (Land), once a user enters a number there LendingPad will auto-create in Disclosures → Summaries of Transactions → Section K → Adjustments. Line f - Estimated closing cost will be reduced by amount on line b or line c to avoid double counting while enabling LE to pick up correct number.