Many potential homeowners find closing costs confusing. If you think about it, most people want to sign the mortgage closing documents and are ready to move into their own home.
Understanding closing costs can save you time and money.
As a benefit to homeowners, clients, and those who are financing their first homes, I have broken out each of these closing costs in this booklet:
Understanding Mortgage Lending Closing Costs
The federal government tried to simplify understanding closing cost for a mortgage in order to address homeowner’s concerns.
Unfortunately, consumer advocate groups interfered by lobbying for restrictions on commissions and attempting to force lenders to charge the same flat fee to all borrowers, regardless of the loan program, amount or parameters, and the amount of work involved.
The federal government’s intentions were good, though misguided.
In attempting to prevent unethical lenders charging exorbitant fees to low income borrowers by forcing disclosure of commissions, the good faith estimate is now infinitely more confusing and almost impossible to explain.
Fees that were itemized are now wrapped up into one vague fee.
In addition, most large banks and big box mortgage lenders have found a loophole which allows not disclosing a good faith estimate at all. They send out an “estimation of charges” also called many other names. It is often incomplete (missing escrows), and figures almost always change once they have your money.
This process hurts private mortgage lenders and borrowers alike because you are rarely comparing apples to apples. Our booklet spells out all of the reasonable and customary closing cost you will incur when purchasing or refinancing a home through a mortgage loan.
Any additional fees called by any other name on any other type of estimate are frivolous junk fees that go straight into the bank or lender’s coffers.
Check out my booklet, and be sure to contact me if I can answer any specific questions for you:
Understanding Mortgage Lending Closing Costs
Related articles:
Mortgage Lending: Right Back Where we Started, Almost
Mortgage Standards May Be Loosing Up for New Homebuyers
The Truth About On-line Lending Scams
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you.
David.
919.851.0999.
Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’. All rights reserved.
Tags: mortgage lending, mortgage loans, mortgage regulations