Home Buying in 28906>Question Details

Kathryn Rhda…, Home Buyer in Murphy, NC

I put in an offer for NC home. Lender wants $485 for to cover appraisal and credit report BEFORE beginning my formal pre-qualification for this purch

Asked by Kathryn Rhdavis, Murphy, NC Sun Jul 7, 2013

purchase . I had 2 other bankspre-qualify me for free. Why do I need a closing attorney??

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7
Sherry McGregor, BIC NC & GA’s answer
Because the state of North Carolina requires that an attorney be present for closing. You will be glad that you have an attorney to do a title search, etc before you sign mortgage paperwork that will encumber you for possibly thousands of dollars. If you need a referral, call me and I will be glad to send you some names. 1-828-837-0424

SHERRY MCGREGOR
TIMBERWOOD MOUNTAIN REALTY, INC.
0 votes Thank Flag Link Tue Dec 31, 2013
Pre-qualification means nothing at all, it's always been a worthless piece of paper. You should have been pre-approved (also free from reputable lenders) before you ever made an offer, and both your agent (assuming you had one and the listing agent apparently don't really know what they should be doing.

If you've made an offer then you should be applying for a mortgage as you have a defined period of time (the due diligence period) listed in your Offer to Purchase and Contract in which to secure your loan. It sounds to me as if you're applying for a mortgage and this is why the lender is rightfully requesting money.

In North Carolina buyers use attorneys to close transactions, you don't have a choice and you should have had the entire home buying procedure explained to you before you ever made an offer.

I read your email and shudder, as it's apparent you don't really know what the process is, what your legal obligations are, and what the financial risks to you are. You don't seem to be working with anyone here in North Carolina who seems to know what you should be doing and I can easily see your transaction ending in disaster for you and everyone involved.

You need either an experienced buyer broker (Which it doesn't sound like you have) or at this point an experienced real estate attorney to represent you and to answer your questions and help keep you out of financial trouble. Stop wasting time on the Internet, and find yourself an experienced attorney today. Your lender might be able to help you with some names and numbers.
1 vote Thank Flag Link Mon Jul 8, 2013
We have always used an attorney when buying /selling real estate in Maryland simply because they charge much less than the local Title Company(s). We did have to shop law offices around for a good price. The attorney in Murphy, NC that we used for our original purchase wanted another $800.00. We found a great down to earth husband and wife law firm in Hayesville, NC and we saved money. Funny Thing - The Murphy lawyer actually called us back to state he would match any other price. We told him it was too late and he should have appreciated our return business.
Flag Sat Sep 14, 2013
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0 votes Thank Flag Link Tue Jan 14, 2014
It isn’t a pre-qualification if you already have a contract on a property. Use one of the lenders that have already told you okay.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Mon Jul 8, 2013
Kathryn

There is a difference between pre qualifying before you start shopping and a formal pre approval once you have a contract on a house. The first requires no appraisal the second does.

In years past you could pay for the appraisal at closing; however the appraisers got burned by those buyers who, for whatever reason, did not close.

It is very common for these items to be paid in advance.

As for the attorney, NC does not use a title company to close escrow. It is done by an attorney who does basically the same thing as the title company.
0 votes Thank Flag Link Sun Jul 7, 2013
Most of the Lenders I've seen want the Credit Report $$ up front and the Appraisal is COD!
Some lenders, if they really want your buisness, will waive the Credit fee.
A year or two ago, some lenders were ofering free Appraisals.

To compare two Lenders and get their GFE; maybe this is the cost.
0 votes Thank Flag Link Sun Jul 7, 2013
Kathryn:
Your REALTOR should explain why the lender is asking for this. I've not seen this in my area, but different lenders have different requirements.

As for needing an attorney to close, we are an attorney state vs. a closing company state. The attorney does the same work and is required to close properties in North Carolina.

Hope this is helpful!

Shirley Kelley
Mountain Property PROS
828-400-6295
http://www.mountainpropertypros.com
0 votes Thank Flag Link Sun Jul 7, 2013
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