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The devil is in the details. The GFE you received from your bank should have disclosed all of the closing costs up-front. There should be NO surprises from your bank at closing.
When we bought our house, I created a spreadsheet with all the numbers from the GFE and my closing agent/title company, and knew how much I needed to bring to the table (to the penny) before I even reviewed the HUD-1. I asked for a copy of the HUD-1 the day before closing to check their numbers.
That's nice in a perfect world. But why assume it's the bank's surprise? Not all charges are possible to be disclosed and many fall outside of the GFE or the lender's responsibility. I recently reviewed a HUD I for someone that was off almost $5000 and the lender did nothing wrong. The buyer had a $2500 HOA initiation fee (didn't read their docs), $600 quarterly dues, an $800 home inspection fee, a $395 real estate company fee, and finally, a $600 staked survey charge. There was even a notation the survey recert fee w/out stakes was $175.
What is even more difficult in this scenario, the OP wasn't on the loan. It's like playing a game of telephone - he doesn't know what he wasn't told and he wouldn't know to ask. Being the nonpurchasing spouse is a left field situation, because they aren't necessarily included in converstions and all emails.
This is all going away August 1 withTRID, where final disclosures are mandated 72 hours prior to closing. I suspect for the first 30 days, many a postponed closing will be the norm. Try to have your closing occur in July or after Labor Day.
That's nice in a perfect world. But why assume it's the bank's surprise? Not all charges are possible to be disclosed and many fall outside of the GFE or the lender's responsibility. I recently reviewed a HUD I for someone that was off almost $5000 and the lender did nothing wrong. The buyer had a $2500 HOA initiation fee (didn't read their docs), $600 quarterly dues, an $800 home inspection fee, a $395 real estate company fee, and finally, a $600 staked survey charge. There was even a notation the survey recert fee w/out stakes was $175.
What is even more difficult in this scenario, the OP wasn't on the loan. It's like playing a game of telephone - he doesn't know what he wasn't told and he wouldn't know to ask. Being the nonpurchasing spouse is a left field situation, because they aren't necessarily included in converstions and all emails.
This is all going away August 1 withTRID, where final disclosures are mandated 72 hours prior to closing. I suspect for the first 30 days, many a postponed closing will be the norm. Try to have your closing occur in July or after Labor Day.
Won't TRID take effect only on applications written after August 1, not just anything closing after August 1?
But, for sure, back to back stuff will turn into nightmares of stress.
That's nice in a perfect world. But why assume it's the bank's surprise? Not all charges are possible to be disclosed and many fall outside of the GFE or the lender's responsibility. I recently reviewed a HUD I for someone that was off almost $5000 and the lender did nothing wrong. The buyer had a $2500 HOA initiation fee (didn't read their docs), $600 quarterly dues, an $800 home inspection fee, a $395 real estate company fee, and finally, a $600 staked survey charge. There was even a notation the survey recert fee w/out stakes was $175.
What is even more difficult in this scenario, the OP wasn't on the loan. It's like playing a game of telephone - he doesn't know what he wasn't told and he wouldn't know to ask. Being the nonpurchasing spouse is a left field situation, because they aren't necessarily included in converstions and all emails.
This is all going away August 1 withTRID, where final disclosures are mandated 72 hours prior to closing. I suspect for the first 30 days, many a postponed closing will be the norm. Try to have your closing occur in July or after Labor Day.
My point is there should be no surprise (or hidden) lender fees. Thats what the GFE is supposed to prevent! Of course, there are costs that you have to anticipate (like pro-rated HOA dues or real estate taxes), and a good closing agent should be able to give rough estimates of these items well ahead of closing. In my state, the title company I chose for my own policy handled closing and my closing agent gave me estimates for pro-rated taxes, transfer taxes, owners/lenders title insurance, and RE agent associated charges more than 2 weeks before closing.
The rest of the items you mentioned are not closing cost surprises. Real estate fixed commissions are disclosed on the buyers agent representation contract--the buyer agreed to the fee when they hired their agent. Home inspections and surveys are paid by buyers, in most cases, BEFORE closing.
Won't TRID take effect only on applications written after August 1, not just anything closing after August 1?
But, for sure, back to back stuff will turn into nightmares of stress.
Yep, TRID should be what cures all evils for all full applications taken after August 1. Not "tbd" addresses, but full legal applications.
We've taken every new rule under the chin so far just fine. This one may be the one that gets the industry to take notice. Most of the other rules have been ho-hum, "is that all you got?" We are a industry that demands complete perfection, but before the fact, LOL? What will we do with our errors and ommissions forms?
I suspect it may be more than the back-to-back stuff. It seems every file I've had lately is urgent because: (insert excuse of choice) leaving the country the next day, having a baby/going into hospital 2 days from now, builder will start charging penalties, it just goes on and on. These are reasons we are hearing why preferential treatment is needed, these are the excuses why we should stop what we are doing and move someone to the front of the line. And it's usually these folks that have issues providing something essential to the closing.
And the ones that are use to providing documents down to the wire are going to be the ones that TRID stings the most. The builder with the occupancy permit in the 11th hour, the final on the repairs on the appraisal, the hazard insurance policy that we couldn't get the binder, or the payoff that someone forgot to order. All we need in this scenario is for a borrower to lose their lock-in and the fun can really begin..
And it won't be August 1 that will be the real date of concern, it will be closings after Labor Day
My point is there should be no surprise (or hidden) lender fees. Thats what the GFE is supposed to prevent! Of course, there are costs that you have to anticipate (like pro-rated HOA dues or real estate taxes), and a good closing agent should be able to give rough estimates of these items well ahead of closing. In my state, the title company I chose for my own policy handled closing and my closing agent gave me estimates for pro-rated taxes, transfer taxes, owners/lenders title insurance, and RE agent associated charges more than 2 weeks before closing.
The rest of the items you mentioned are not closing cost surprises. Real estate fixed commissions are disclosed on the buyers agent representation contract--the buyer agreed to the fee when they hired their agent. Home inspections and surveys are paid by buyers, in most cases, BEFORE closing.
Agreed and absolutley the lender's estimate should be as tight as possible. What I am saying is many of the surprises lately are not even lender related, but other fees altogether. Also, unless we can see how that HUD was laid out and compare it to the GFE, there's no way to see if gross errors were made. Everyone assumes if it's $600 more, it's the lender's fault. I'm saying more and more lenders have their act pulled together, with all the regulation tightening we have seen we have 0 tolerance items and items with 10% tolerance. There is no way to tell what happened with the OP, but it's pretty clear it was not in those tolerence fields.
What I am finding curious, "the bank told them to bring $3200 at worse case" and that's what it was, but because they also said it's usually better, he's upset because it's what they put in writing? The OP doesn't say how much better they were expecting the costs to be.
Did anyone explain to the OP that the first payment won't be due until July 1 (if they closed in May)?
I'm on my 6th purchased home, and I still get confused with the HUD-1. First time buyers need extreme hand holding on this.
I was recently a first time buyer and received my HUD-1 a day or two before we closed. I crunch numbers for a living, so I sat down and went through every line and tied out every number. If someone is not good with numbers or used to reconciling accounts, I can see how it would be confusing. They actually went over every number with me at the closing to make sure I understood. Mine was pretty close to the estimates I received from my loan officer earlier in the process. I ended up needing about $500 less than I anticipated.
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