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bubblesitter says

APOCALYPSEFUCK is Tony Manero says

gregpfielding says

they've all corrected their messes

Hahahahahahahahahahahahahahahahahahahahahahahahahahahaha!

And Charles Manson has found Jesus!

Hahahahahahahahahahahahahahahahahahahahahahahahahahahaha!

ROTFLMAO.

LOL!

APOCALYPSEFUCK is Price Less.

Hmmmm.... $10,957 closing cost for a $440,000 loan?!

Origination charge $3,195.00 - Is this normal?

Appraisal Fee $500.00
Credit Report $55.00
Flood Certification $12.25
Tax Service Fee $65.00
Wire Fee $20.00

Title insurance - Do we need both a lender's AND an owner's title insurance?
Title services and lender's title insurance $1,757.80
Owner's title insurance $629.00

Transfer taxes $2,420.00
Daily interest charges (2 days at 49.7260 per day) $99.45 - I assume this will change depending on the closing date

Homeowners insurance (Hazard Insurance Premium) $1,374.96 - Seems high? Isn't this usually around $800?

Thoughts anyone?

nspiratn says

Hmmmm.... $10,957 closing cost for a $440,000 loan?!

Origination charge $3,195.00 - Is this normal?

Appraisal Fee $500.00

Credit Report $55.00

Flood Certification $12.25

Tax Service Fee $65.00

Wire Fee $20.00

Title insurance - Do we need both a lender's AND an owner's title insurance?

Title services and lender's title insurance $1,757.80

Owner's title insurance $629.00

Transfer taxes $2,420.00

Daily interest charges (2 days at 49.7260 per day) $99.45 - I assume this will change depending on the closing date

Homeowners insurance (Hazard Insurance Premium) $1,374.96 - Seems high? Isn't this usually around $800?

Thoughts anyone?

Whatever quote you are getting now before you sit down for that closing meeting will not mean one red cent. All the quotes will go up, and the descriptions of the services will be changed. This is done so you can't compare and complain.

You will see additional items like:

Copy fees
Documentation fees
Courier fees
application fees
IjustScrewedYou fees
etc. etc.

Go ahead, try to bring in your quotes to the meeting and see what happens. I once has the closing agent tell me that $2000 over the quote I was given to close was actually really good.

Bunch of crooks.

Don't forget the fee-processing fee...

Here's are a couple of more kicks in the gut that i found out about today -

From what I understand, if a buyer is putting down MORE than 20% down, but LESS than 25% (so between 20-25%), mortgage lenders add a "risk fee" which is a 0.25% of your loan amount. Why exactly do they do this?! What risk do you have from an owner that has stellar credit, is responsible enough to put 20% down and actually has the income to comfortably afford the monthly mortgage payment?

Also, I learned about negative/rebate points today - Basically cash back to use for your closing costs - and that lenders are not legally required to disclose this to the buyer. BUT, mortgage brokers are required to disclose these negative points to the buyer. So if I don't want to be screwed over by the lender, my only choice is to work with a broker (and pay broker fees). How is that fair?!

So overwhelming! The more i learn the more I dislike this mortgage lending business.

RentingForHalfTheCost says

Whatever quote you are getting now before you sit down for that closing meeting will not mean one red cent. All the quotes will go up, and the descriptions of the services will be changed. This is done so you can't compare and complain.

Oh really?! The lender I talked to said that the costs will be LOWER than this estimate I got... just lovely!

nspiratn says

RentingForHalfTheCost says

Whatever quote you are getting now before you sit down for that closing meeting will not mean one red cent. All the quotes will go up, and the descriptions of the services will be changed. This is done so you can't compare and complain.

Oh really?! The lender I talked to said that the costs will be LOWER than this estimate I got... just lovely!

If you go through it and it comes out less, then please report back. I was told by my manager at the time in 2003 to take a few shots of whiskey to dull the pain. It definitely helped after seeing the shady practices of all the players. They know you are emotionally attached to the asset already and try to play you like a deck of cards.

My next closing meeting I attend (not until around 2014-2015) I will make sure I have the mindset to walk out if things don't appear like they were quoted. I think my wife will actually walk out before me, which is good to know.

nspiratn says

Hmmmm.... $10,957 closing cost for a $440,000 loan?!

Origination charge $3,195.00 - Is this normal?

Appraisal Fee $500.00

Credit Report $55.00

Flood Certification $12.25

Tax Service Fee $65.00

Wire Fee $20.00

Title insurance - Do we need both a lender's AND an owner's title insurance?

Title services and lender's title insurance $1,757.80

Owner's title insurance $629.00

Transfer taxes $2,420.00

Daily interest charges (2 days at 49.7260 per day) $99.45 - I assume this will change depending on the closing date

Homeowners insurance (Hazard Insurance Premium) $1,374.96 - Seems high? Isn't this usually around $800?

Thoughts anyone?

That quote sounds like you are paying the sellers fees as well. Transfer, title, title insurance... most of that is sellers responsibility.

Origination fee that sounds high too, why pay someone so much for filing paper work?

You should come back and tell the seller to pay both his and your closing costs.

RentingForHalfTheCost says

Whatever quote you are getting now before you sit down for that closing meeting will not mean one red cent. All the quotes will go up, and the descriptions of the services will be changed. This is done so you can't compare and complain.

This is false. Read up on RESPA rules for HUD Good Faith Estimates. The fees listed will not go up and are the max that will be charged - often they will be lower at closing.

I bought and sold in 2010 and my GFE was much higher than actual cash required at closing.

eclipxe says

RentingForHalfTheCost says

Whatever quote you are getting now before you sit down for that closing meeting will not mean one red cent. All the quotes will go up, and the descriptions of the services will be changed. This is done so you can't compare and complain.

This is false. Read up on RESPA rules for HUD Good Faith Estimates. The fees listed will not go up and are the max that will be charged - often they will be lower at closing.

I bought and sold in 2010 and my GFE was much higher than actual cash required at closing.

Not false in the sense it happens to me everytime I purchase a house (5 so far in my life). False in the sense it should not happen, I agree. That is why I call them crooks.

So, am I the only one that gets closing cost shock? Eclipxe seems to imply that all is good in the closing meetings and you might actually get a rebate. I have all the records of the quotes I received and the final closing costs and they never match. You can never even compare them because they change the names. I'd love to hear from other that had similar experiences as mine. I'm guessing Eclipxe is on the take in this business and after commission rather than speak any real life truth.

Maybe the issue with my false estimate is that I have never bought through HUD. I never took out a mortgage for more than 50% of the cost, so that probably immediately puts me in a class of "people we love to screw over with inflated closing costs". I have literally sat in the closing meeting from 9am to 5pm refusing to sign because the prices were adjusted up from the quotes I got just days before.

RentingForHalfTheCost says

I'm guessing Eclipxe is on the take in this business and after commission rather than speak any real life truth.

Nope, just an engineer.

RentingForHalfTheCost says

Maybe the issue with my false estimate is that I have never bought through HUD. I never took out a mortgage for more than 50% of the cost, so that probably immediately puts me in a class of "people we love to screw over with inflated closing costs". I have literally sat in the closing meeting from 9am to 5pm refusing to sign because the prices were adjusted up from the quotes I got just days before.

Maybe. Maybe it was timing. I'm guessing you didn't buy in 2010 or after, right? I don't doubt that you experienced inflated costs, and that is exactly what RESPA rules put in place to prevent. They went in place in 2010. Your buying experience now should be better.

I could be wrong though!

APOCALYPSEFUCK is Tony Manero says

Hahahahahahahahahaha! Hahahahahahahahahaha!

What about all the people who were mistakenly foreclosed?

And what about people who get struck by lightning or attacked by sharks? Does it happen? Of course. But it isn't going to.

nspiratn says

Thoughts anyone?

It looks like you are paying a lot of costs that they seller would typically pay. Maybe that's how you negotiated your deal.

The "transfer taxes" seem really high... is the property in Berkeley?

eclipxe says

RentingForHalfTheCost says

Whatever quote you are getting now before you sit down for that closing meeting will not mean one red cent. All the quotes will go up, and the descriptions of the services will be changed. This is done so you can't compare and complain.

This is false. Read up on RESPA rules for HUD Good Faith Estimates. The fees listed will not go up and are the max that will be charged - often they will be lower at closing.

I bought and sold in 2010 and my GFE was much higher than actual cash required at closing.

I have closed 3 mortgages in the last year and this is correct. On all three I got big rebate checks after closing. The lenders pad the quotes because under the new RESPA rules they can not jack up the fees at the closing table.

Walter says

I have closed 3 mortgages in the last year and this is correct. On all three I got big rebate checks after closing. The lenders pad the quotes because under the new RESPA rules they can not jack up the fees at the closing table.

Thanks Walter! It's hard coming on here and presenting facts only to be called a shill for the industry.

RentingForHalfTheCost: "I'm guessing Eclipxe is on the take in this business and after commission rather than speak any real life truth."

eclipxe says

RentingForHalfTheCost says

Maybe the issue with my false estimate is that I have never bought through HUD. I never took out a mortgage for more than 50% of the cost, so that probably immediately puts me in a class of "people we love to screw over with inflated closing costs". I have literally sat in the closing meeting from 9am to 5pm refusing to sign because the prices were adjusted up from the quotes I got just days before.

Maybe. Maybe it was timing. I'm guessing you didn't buy in 2010 or after, right? I don't doubt that you experienced inflated costs, and that is exactly what RESPA rules put in place to prevent. They went in place in 2010. Your buying experience now should be better.

I could be wrong though!

Correct, I bought houses during 1997 to 2003. Glad to see the abusive system that was in place then has now been improved. I still don't understand why you need to get estimates at all. Why not have the actual real values before the meeting. Is it that hard to have real guaranteed quotes? I'm sure they are better from what has been said here, but still, like buying any large purchase, can't they give you the real numbers? Stupid if you ask me. What changes tomorrow verses today?

And sorry for the accusation of your being in the business. There are many wolves in sheep's clothing around here, so sometimes I get it wrong. My apologies.

Walter says

The "transfer taxes" seem really high... is the property in Berkeley?

Nope. San Jose.

Does any one know if you can get a Good Faith Estimate from the lender/mortgage broker at the time of a pre-approval?

Or is the official GFE only provided by the lender after you have selected the house you want to buy?

Also, is it legal for a mortgage broker to charge application fees for a pre-approval from a lender?