First, why is your banker quoting you the closing costs of 3%? This is usually written in your Purchase Contract when negotiating with the seller. Did you ask for 3% on the contract? Or are you having to flat out pay all the closing costs because the seller wouldn't contribute?
Second, I'm sure there's a few more facts, but, it doesn't take but a few minutes to give a client a "Buyer's Cost" breakdown or a GFE. Has escrow provided you some sort of HUD Settlement statement showing an "estimate" of closing costs and fee's?
I've heard of a few changes with lenders during the process, but my question to the lender would be, "Why all these changes"?? What has caused this to occur during the process? Did your credit change, your debt ratio, etc.?
If they can't give you definitive answers to your concerns, it may be a good time to escalate it to maybe the branch manager. It's your money, interest rate, etc. You need a better answer to this.
Also, what advise is your agent giving you? Their input may provide some sort of clarity to this.
Wow, sorry you're going through such a tough transaction.
Best of luck!
Keller Williams Realty
My biggest concern with the 6.25% IR is that this will require us to pay 10% down which he said may be a possibility. This close to our closing date, I don't like this many unkowns.
His reasoning for the big change was the escrow of our taxes because we don't have 20% down, but he knew that 20 down was never a possiblilty of ours.
I can't imagine why your closing costs are 3 - 4.5% of your sales price. That sounds outrageous - unless you were paying discount points to buy down your interest rate. But, at 6.25% that doesn't sound like the case, either. Typically, home inspections are not part of the closing costs, but appraisals usually are. Although, every lender quotes their closing costs differently. I agree with Kathy - it only takes a few mintues to create an Initial Fee Breakdown (even if you had to create if from scratch because a computer program was down) or Good Faith Estimate so you know exactly what you are being charged. Switching lenders and closing by June 24th should not be an issue.
I strongly encourage you to shop around and get a second opinion!!
I'm around all weekend if you'd like me to work up some numbers for you. Pre-approvals are done at no cost and no obligation to you. I'm in Appleton, but licensed to do business anywhere in Wisconsin. I've done loans for people as far away as Europe. (Met them when they landed in the US to sign their closing documents!) My cell phone number is 920-915-3242. The web address for a secure, online loan application is http://www.patriotms.com. Be sure to select Linda Williamson, as we have more than one Linda. :-)
8) Q: The estimate of â€•all other settlement chargesâ€– in the â€•Important datesâ€– section on the GFE must be available for at least 10 business days. When a GFE is mailed, are the 10 business days measured from when it is mailed?
A: Yes. The estimate of â€•all other settlement chargesâ€– in the â€•Important datesâ€– section on the GFE must be available for at least 10 business days from when the GFE is provided, which, in this instance, is the date the GFE is placed in the mail to the borrower. The originator should put the date the GFE is provided into the box for â€•Date of GFEâ€–.
9) Q: If state law does not permit a mortgage broker to provide an interest rate, how should the mortgage broker complete the â€•Important datesâ€– section on the GFE?
A: RESPA and HUDâ€˜s regulations do not exempt any person from complying with consistent laws of any state. HUD's regulations provide a process for addressing questions of consistency between state laws and RESPA. See 24 CFR Â§ 3500.13.
10) Q: If a loan originator offers a â€•float-downâ€– lock option, how would the loan originator complete the â€•Important datesâ€– section on the GFE?
A: A â€•float-downâ€– option should not affect any of the lines in the â€•Important datesâ€– section on the GFE.
3% are reasonable closing costs which will include appraisal and other prepaid required items, title insurance , loan originatiuon fees and possible points and PMI costs in addition insurance tax escrow for 2 to 4 months.
First Weber Group
Certified Distressed Property Expert
Banker also told us we couldn't get an arm because we would need to be able to qualify for a 9% APR even though the rate is only 3.5%. This also doesn't seems fishy to me because I thought people got arms because they are easier to get.
I WAS ASKED TO MOVE THIS QUESTION FROM MN TO WI. TO READ MN THREAD, VISIT LINK BELOW.