Financing in Seattle>Question Details

Carole Cohen, Real Estate Pro in Cleveland, OH

Can you prevent a loan officer from keeping closing cost money for him/herself?

Asked by Carole Cohen, Cleveland, OH Fri May 18, 2007

For example, a closing cost credit that exceeds the buyers actual closing costs?

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The answer is no...and yes. If a listing agent agrees to a cost credit without demanding to see a good-faith-estimate, they have no recourse. Oftentimes, the credit exceeds the costs and the originator should use the "excess' to benefit to buyer in a lower rate. Sometimes, the loan originator "hoards' that money
Web Reference: http://brian-brady.com
3 votes Thank Flag Link Fri May 18, 2007
Brian is correct. As the listing agent, you need to request the buyers good faith estimate upfront before the offer is signed around and the seller has agreed to pay a certain amount towards closing costs. If you rely on the HUD, you won't know what rate is related to the cost. You can read more about this by clicking the link below.
1 vote Thank Flag Link Sat May 19, 2007
If you have a good faith estimate though I take it you can go over the figures and see if it is happening, yes? And the settlement papers would show that as well? Or is it lumped into some other figure?
1 vote Thank Flag Link Sat May 19, 2007
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