When you apply for a mortgage to buy a house, do you want to believe the "good faith estimates" of closing costs your mortgage broker or loan officer sends you three days later? Of course you do. But thousands of consumers complain every year to HUD in Washington, saying the estimates they received were shockingly lower than what they were actually charged at closing.
For example, say your lender's good faith estimate of title insurance costs came to $1,400. But on the final HUD-1 settlement sheet they are over $1,800. Or the good faith estimate listed your total loan origination, title, settlement and other fees at $2,100, but the bottom line on the final HUD-1 said $3,200.
Who typically picks up the difference? Not the lender that made the estimates at application. Not the title company. It is you. That's because under current federal regulations, all lenders have to do is to provide you the estimates within three business days. But they don't have to warrant that the estimates are correct.
Read Full Realty Times Article->
1 comments: