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 and we don’t want to pay too much!
You receive a closing estimate and depending on what stage of the process determines what you receive and disclosures come in several forms;
- Email or estimate done on some sort of spread sheet and/or maybe multiple estimates that you want to compare companies or different loan options.
- LE (Loan Estimate) that comes with Application and is the new multi page disclosure showing additional info about chosen loan program features, Cost, APR etc..
- CD (Closing Disclosure) looks much like the LE and you must receive this at least 3 business days prior to closing.
Closing cost NOT counting down payment are usually around 4% to 7% of the Purchase Price! 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 break it down to who is involved wants to get paid, 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 disclosures we will discuss are based on Pennsylvania and may differ in other states and can even vary in PA. We will show you how to read a disclosure so that you can understand and compare what is 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 ESTIMATE 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.
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