Quote:
Originally Posted by Truckergirl702
Yeah, when a lender is doing their up front Truth in Lending and Good Faith Estimate, their charges can be off by quite a bit. The loan officer/originator does their best at these calculations, but I have seen a lot of "doosies" on these disclosures. The figures are not "set" in stone until closing.
So, I did a quick Google, since I have been out of the Mortgage business for a couple of years now...and it does appear that FHA has changed what they allow a borrower to pay. I guess that the ONLY fee that a buyer CAN'T pay , is the Tax Service Fee. So it is important to have a very detailed sales contract when you find that home you want to buy. If you don't write in that the Seller is to pay for all repairs if there are appraisal conditions for repairs, then it will be up to you to pay for said repairs. These repairs are normally required prior to closing. I personally am a bit floored that they would allow such craziness lol. But I guess that you CAN pay for the appraisal as the Buyer in a FHA transaction....
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The buyer can pay every fee out there on an FHA loan. VA is the only loan type that restricts what the buyer can pay. The FHA buyer should be counseled by their Realtor, but every FHA contract I've seen in the past decade has an FHA Amendatory Clause and an appraisal contingency, protecting the buyer from buying a home that does not appraise or buying a home with basic safety or code violations. Its the home inspection you need to pay attention to and not all of the recommended repairs will be required. The only required repairs will be the repairs required by the appraisal or the negotiated repairs with the seller.
The GFE has drastically changed in 2010. Loan officers mostly over-estimate due to the (lack of) tolerance level for errors. 0% tolerance on lender fees, 10% tolerance on 3rd party fees, and 0% tolerance government recording fees and 0% tolerance on transfer taxes. What do I mean by 0% tolerance? If the lender estimated wrong, and the actual is higher, the lender must past the difference. Estimates have become much tighter since these rules and are about to get even stricter come August 1, 2015.
Buyers are always responsible for the appraisal fee. (~$475) They can be refunded for it by the seller, but it is a buyer cost, just as the home inspection (~$500). Both fees are spent funds in the event you don't close (be it low appraisal or loan denial) or don't negotiate seller help in your contract.
I strongly recommend you take a first time homebuyers class. This is once instance knowledge really is power.
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