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Mortgage Express
Closing Costs - RESPA
There are certain standard closing costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract.
Good Faith Estimate - 2010
New RESPA rules went into effect Jan. 1, 2010. The changes were made to help cnsumers have a clearer understanding of the fees charged & protect them from having fees increase at closing.
A loan originator must complete the standardized GFE form every time an application or information sufficient to complete an application is received in connection with a federally related mortgage loan. Six minimum pieces of information make up a mortgage application under RESPA, and you MUST have all six to trigger the GFE requirement. They are:
1. Property Address
2. Loan Amount
3. Monthly Income
4. Estimated Value
5. Borrower Name
6. Social Security number to pull credit report
Loan originators must provide the GFE within 3 days of applicaiton. They are also bound to the settlement charges and terms listed on the GFE, subject to certain tolerances or changed circumstances.
In the event we don't have all 6 of above items, I can prepare an initial fee worksheet which will show borrower the closing fees, amount of funds needed to close & the house payment.
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Standard Closing Costs
Loan-Related Costs
- Investor closing fees
- Points (optional)
- Appraisal Fee
- Credit Report
- Interest Payment
- Escrow Account
- closing docs
- escrow closing fees
Taxes
- Property Taxes
- Transfer Taxes and Recording Fees
Insurance
- Homeowners Insurance
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
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