Home Buying in Philadelphia>Question Details

Ronnie, Home Buyer in Philadelphia, PA

Bank of America Closing Costs

Asked by Ronnie, Philadelphia, PA Tue May 6, 2008

I was told that the Bank of America pays the closing costs of lenders with superb credit ratings. Can this be trusted? Should the fine print be read on an offer like this?

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11
Ronnie,
Be sure to compare any BANK lender with a mortgage broker. Ask for a "truth in lending statement" from each then ask the other to compare it (it's amazing how they'll tell you things about the OTHER that you won't hear directly from them). Here's something you should know: Banks do NOT have to disclose the money they make like traditional mortgage companies do....they have different rules allowed by the federal government. There's a great article online at http://mortgagecents.blogspot.com/2005/11/local-banks-vs-mor… that gives an overall comparison. So do you homework....afterall you're going to be paying for it over the next several years.
Good luck!
Martin
3 votes Thank Flag Link Tue May 6, 2008
Ronnie, You definitely want to read the fine print. I think bank of America has a pretty good program there but it's not always the right program for everyone. When they say no closing costs, they mean bank fees. There are still Taxes, interest , title and other feees involved. Usually the bank fees are waived, but instead you pay a higher interest rate. If you have any further questions, feel free to contact me.
Good Luck!
Michael

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net
http://www.mortgagepro.instantlender.com
2 votes Thank Flag Link Tue May 6, 2008
I would read the fine print and ask for a "Good Faith Estimate" the 800 #'s are the banks fees to lend you the money for your home. Ask questions and get answers.
Hope this helps.
Jackie Mills
1 vote Thank Flag Link Tue May 6, 2008
I have a current deal with BofA right now. Its a VA loan, but the closing costs are in the area of $17k! There is an addt'l fee charged by the VA for around $8k, but they are still very high on fees. My clients doesn't have great credit.

I'm sure that if they are paying closing costs, they are getting their money back somewhere else, which is usually a slightly higher interest rate.
1 vote Thank Flag Link Tue May 6, 2008
Hello Ronnie,

I have actually represented a buyer who closed one of these loans. Credit score was around 660. On the HUD(settlement sheet) the appraisal, title insurance, recording and notary fees were POL.(paid by lender). What you need to do as a consumer is ensure that you are still getting the best rate best on your qualifying circumstances. What some will do is make your rate .25 or more higher than the goin rate to make up for those fees paid by the lender.
1 vote Thank Flag Link Tue May 6, 2008
I am totally confused by your question. I am going to guess that you mean buyers instead of lenders. There are programs where the lenders will pay closing costs. All they ae doing is increasing the interest rate! It works like a see saw. Higher rate, lower costs. Lower rate, higher costs.
Web Reference: http://usloans.com
1 vote Thank Flag Link Tue May 6, 2008
I have a client who is using Bank of America no fee loan. They are getting a competitive rate and BofA is paying most of the usual closing costs. Their closing costs will basically consist of Escrow Establishment charges (homeowners insurance, taxes, etc.) and Prepaid items (prepaid interest, etc.)
0 votes Thank Flag Link Fri May 16, 2008
Well I used The No Fee Program and it is true that I paid no closing costs.
0 votes Thank Flag Link Fri May 16, 2008
Ronnie,

Any lender (broker or banker) can cover your closing costs if you allow them to increase the rate high enough. We all get the money from the same places and as my father always told me, "there is no such thing as a free lunch".
0 votes Thank Flag Link Tue May 6, 2008
Yes, a friend was a private banking client with BofA and thus paid no closing nor origination fee. I guess they are making a buck load off his other assets under management with them and hence the token freebie....
0 votes Thank Flag Link Tue May 6, 2008
Hi Ronnie,

I had a client who only had to pay taxes, and we used BOA title company so there was no title fees. However, it is a difficult program to get into. When I tried to get another client into it, it didn't work. It may have actually worked out better that I was able to get them an 80/20 loan and a 3% seller's assist. There is always a program out there they will be better suited to your needs and qualifications. Bank of America is a good place to go. I know one of the bank manager's there personally. His location is 10th and Chestnut. If you have any detailed questions, he can help. His name is Kareem Thomas, and his phone number is 267-886-1064.
0 votes Thank Flag Link Tue May 6, 2008
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