Closing Costs, GFE
Like you, I’m a consumer and whether it’s a restaurant, a car, cellphone or any purchase I want a good value. I don’t mind paying for something that has value to me. I understand that a salad at a 4 star restaurant will cost more than a salad at a fast food chain.Regardless of the choice, our satisfaction is based on our own expectations of that experience.We all want the best deal or value for us!
You receive a closing estimate or maybe multiple estimates. It’s has 50 lines with numbers and a big total. Is $75 a good price for a CPL? Are these escrows correct? What’s interim interest? And are there any hidden costs or items not on this list? I have an estimate for a NO Cost loan, is it a good deal? So you ask yourself. Do I even need this stuff? Why am I paying for it? What does it do for me? Can I shop for a better price on this? All great questions… buying or financing a home is not 1 thing but a series of multiple things happening all at once… Ok.. Let’s flip this on it’s head… Everyone involved wants the best deal for them, this includes the appraiser, Title Co., U & O inspector, Realtor, Lender, Broker and everyone else seemingly with there hand in your pocket. I don’t think anyone minds paying for value, so let’s follow the cash and see who are all these people, what are they doing for me, am I getting value and what are my options? Let’s get you some answers!
The closing costs and GFE disclosures we will discuss are based on Pennsylvania and may differ in other states. The laws governing the way in which loans are disclosed changed in 2010 and the disclosures became much more complicated. (congress thought it was simpler with 4 pages instead of 1) Regardless, we will break it down, 1 form or 4, PA or not,we will show you how to read a disclosure so that you can understand and compare whats in any estimates or just as important see whats been left out to determine what is in your best interest.
Please print a copy of the GFE/Worksheets if you would like to follow along with the video. “WORKSHEETS”
“START GFE VIDEO” (under construction)
The next couple sections will deal with some technical aspects of loan pricing and disclosures. If numbers are not your thing believe me you are not alone! But please at least give it a read through because it has a lot of impact on your rate and cost. You may have done several loans before and never heard or these terms but after 04/01/2011 you will with the new rules these will be front and center now.