Posted on 01/31/2008 7:20:47 AM PST by 4everontheRight
I once negotiated with the bank that they would pay for the appraisal. That was about 20 years ago when business was tight and good customers (ie - ones that paid back the money) were actually in demand...
Don't know of one state that requires it, actually I think federal law makes it illegal to require it.
No commercial lender or bank will lend you a dollar without it.
...so I fill out apps first to get the good faith estimate or how do I go about getting this information first?
Just ask them to fax it over in writing. If they want your business, they will do this happily. They can’t possibly expect you to show up at the closing not knowing the final bottom line costs. They do mortgages on a daily basis and know the costs to the dime. If they tell you X up front, and at closing it’s Y. Walk away.
Go to your local bank and talk to the lending officer.
Mortgage companies require it.
Hell no, way too much. Look harder and don't say that their rates are "about the same" they are either lower, higher or equal, but "about the same" indicates a lack of real examination on your part.
It's your money, but a critical examination is important before you make a 30 year contract.
BTW, the difference between 2%-3% is not just one point, it's 50%. Think about it.
That sounds about average for closing costs. It does vary by state (taxes and fees for different states vary.)
Get a good faith estimate - they should be able to get you one once you sign an initial authorization and they pull credit and get at least a verbal from you on income and assets.
My title company (used during both closings) was very helpful during the refi when the mortgage company (used during both closings) slipped some bogus additional charges into the closing docs. The goofy charges were backed out of the closing costs.
If you are getting a lot of variation on GFE's, yet there is one broker you really seem to like and want to do business with, show him/her the competing quotes - most brokers are willing to consider adjusting their fees to get your business.
And, if you are planning on living in the home for more than five years, get a FRM, not an ARM of any kind.
Interest is the most obvious finance charge, but not the only one. There are several fees paid up front, at the time of closing, which are paid to the bank as a condition of getting the loan (thus, they are finance charges). As I recall, the 800 series of line numbers on the settlement statement are finance charges.
The APR is the expression of the cost of the loan when ALL finance charges are included--interest AND upfront fees. APR includes the interest over the life of the loan AND the upfront finance charges.
The reality, however, is that you pay those fees upfront and the interest rate over the life of the loan.
It may or may not be too much. Get a GFE and see what it entails. Here in Maryland, you can NEVER get below 2% as almost that much are “transfer taxes” and fees that our lovely liberal state rakes us for.
You might be confusing title insurance with “mortgage life” insurance or whatever they call it - that pays off the loan if you die.
Title insurance is required by the lender.
True you need it to get a loan. Claim? Are you kidding. The real scam is calling it insurance. It (title insurance) is merely a short search that takes only a few minutes to determine title recordings on property. If for some reason a lien comes up later that did not show on this search the you are SOL.
That is one thing you can do if you’re in tight with someone. As a broker, I rarely do it unless it’s a client I’ve known a long time, because I can’t afford to pay for 4 people’s appraisals that don’t close a loan!
Actually, that’s the title SEARCH and that’s a different fee. Title insurance actually protects against invalid or old leins that are potentially attached to a property from years before the current owner ever owned the property.
It is meant to protect an owner’s or lender’s financial interest in their property against loss due to title defects, liens or other matters, mainly things that “pop up” against a prior owner that are attached to what is now your property.
“Credit life” is dead. I haven’t seen one on a loan in at least five years.
It was a ripoff anyway.
OUR costs, yes. The title company's and the government, we can come close (within 5% usually) but NEVER exact...at least not until the loan is in process. There are many things that you can't know exactly - like taxes due, recording fees (depends how many pages the mortgage is and this varies depending on who the loan will be sold/sourced to) as well as things that you don't expect, like an additional lein search or something.
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