Author Archives: Site Administrator
Understanding Your Loan Estimate: Page 2, Loan Costs
Closing costs are fees paid when the title of the property is transferred to the buyer making them the legal owner. Origination Charges are fees collected by the lender for the loan process. They may including fees for handling the loan application and “Origination Fees”, which are compensation paid by the creditor to the… Read More »
Understanding Your Loan Estimate: Services You Cannot Shop For
These costs are paid to outside parties, not the lender, but you don’t get to choose them. They may include: appraisal, which puts a value on your property on the lender’s behalf a credit report on you fees to assess flood risk of your property, or for ongoing monitoring of flood zone changes related… Read More »
Understanding Your Loan Estimate: Services You CAN Shop For
These costs are paid to outside parties and YOU are free to shop and compare providers for a variety of services. These might include pest inspection, or a survey to verify property lines or a range of Title-related services. Title services might include: a Lender’s title policy, which protects their legal interest in their loan… Read More »
Understanding Your Loan Estimate: Other Costs
Real estate transactions require taxes, certain pre-payments, and escrow funding. Recording fees are charged by government agencies for keeping legal ownership records, while “transfer taxes” may be imposed by states, counties and municipalities on real estate ownership transfers. Prepayments may include homeowner’s insurance premiums on the property mortgage insurance, if required property taxes for… Read More »
Calculating Your Cash To Close
Page 2 of the Loan Estimate provides the current ESTIMATED cash to close. Some costs will stay the same between estimate and closing. Some will change. A – Origination Charges – should match. B – Can’t Shop – 10% Tolerance C – Can Shop – no tolerance limit, BUT IF you select a provider… Read More »
Understanding Loan Estimate Comparisons
Page 3 of your Loan Estimate includes measures to help you compare loans. “In X Years” shows the total amount you will have paid in that time, and the dollar amount applied to your loan principal. The ratio between total paid and principal reduced may change over time. The APR shows interest PLUS fees… Read More »
Your Rights And Rules For Closing Disclosures
The Closing Disclosure documents the actual terms of your loan transaction. You should receive it no later than 3 business days before consummation. It must be in writing – paper or digital. If the loan terms or costs change prior to consummation, your lender must provide a corrected disclosure AND an additional 3-business-day waiting… Read More »
Understanding Your Loan: Closing Cost Details
Page 2 of your Closing Disclosure details specific closing costs. Section A includes: Origination charges collected by the lender Origination fees paid to brokers, loan officers or other parties and Discount Points – prepaid interest. These figures should match your original Loan Estimate. Section B covers services for which you could NOT shop. The… Read More »
Understanding Your Loan: Cash And Transaction Summaries
Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges. If “Did this change?” is “YES” notes for changed sections should be provided. The bottom line final “Cash to Close” is the money you will need in-hand in three business days. If your transaction has a… Read More »
Understanding Your Loan: Additional Information Can Be Important
Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan. Review these terms: Assumption: can this loan be transferred to another person if you sell or transfer the property? Demand: can the lender require early repayment of the loan? Late Payments: what penalty,… Read More »
