If you are looking to complete a purchase or sale of a home, you shall no longer be kept in the dark when it comes to its closing expenses, thanks to the changes made in the RESPA this year. Loan originators seem to be opposed but it should help even the playing field and help buyers avoid the all too familiar bait and switch policy!
These changes require lenders to completely disclose every single closing expense, including expenses related to getting loans and any estimated expense for settlement, title insurance and the like.
Closing process forms have also gone through changes to make things easier for consumers to fully understand these costs and to compare them with the final closing expenses. This has encouraged consumers to shop around and compare costs from different lenders prior to making a mortgage choice.
Unfortunately, these offered estimates are usually only binding for ten days, so buyers only get several weeks to complete necessary tasks like keeping settlement services and reviewing title reports prior to closing. It would therefore be a necessity to act fast and meet deadlines within contracts of sale.
Because of this, every home buyer should work closely with an expert in real estate to come up with the best strategies in finding the ideal closing service vendor in no time.
Several Tips You Should Follow:
1. Since local customs and laws tend to differ, your agent might strongly recommend you to get optional services like home warranties and inspections. Ask and make sure it makes sense for your purchase.
2. Buyers who are smart can save tons of money just by finding personal providers of closing expenses to retain quality at a lower cost but this can lead to delays and make it difficult to close on time.
3. Overall, it comes down to the old rule that you just need to read and understand everything you are signing. The item that really concerns me is lenders will have to offer buyers a good faith estimate and it has to remain the same all the way through to the end of the loan. Any unexpected expense will require the loan to go back in to underwriting and cause additional delays.
Make sure you do your homework and find a great mortgage company to work with! Please view the RESPA website for additional information.