Hidden cost

[papia]

Ask the lender at the time of application for exactly what fees are included on the federal settlement forms and what fees may be charged at closing.

[mamab]

That's good advice. You should always ask up front about ALL costs associated with a mortgage. That way you're not shocked when you sign the papers and see that the total owed is more than you were expecting.

[SageMother]

There see to be some mortgage companies who feel it is ok to have last minute increases in closing costs. You can be sitting at the table getting ready to go through the signing of that stack of papers and all of a sudden they give you a higher price for the closing. This happened the day my husband and I went to sign for the home we are in now and if we hadn't needed to move so urgently I might have told the people that they could keep the house.

Afterward, the realtor told us that she was at a closing a year before and all of a sudden there was in increase in the closing fee at the table. The buyers looked at eeryone assmbled and saaid the deal was off. This is pretty common I guess because she also told us there are times when the realtors came up with the extra money to make the sale!

This is something to consider when you go to closing. If your purchase isn't going to live up to the costs given, it might be best to just walk.

[LyricB]

You won't get a completely accurate cost list from your mortgage company until after you apply. Anything you get from them beforehand will be a rough estimate.

[nangel78]

That is very true Lyric. Just make sure to get your questions answered clearly so you are aware of the costs.

[taiarain]

It's important to make sure you get everything in writing. Get a written statement once you're pre-approved with all the closing costs detailed.

[moonmagick]

I agree. When I bought my last home, it seemed like something new was cropping up all the time. Oddly enough though, the day of closing I actually came home with a check for some of my money back. I think I paid for an inspection that they had billed for in the closing costs.

[Calypso]

Quote:

Originally Posted by SageMother

This is something to consider when you go to closing. If your purchase isn't going to live up to the costs given, it might be best to just walk.

This is excellent advice, SageMother. The mortgage companies try this tactic (and get away with it) so often because they (correctly) assume that on closing day the buyers will feel too committed to their new home to get up and walk out. If more people did just that, mortgage companies might cool it with the last minute extra charges.

[moonmagick]

Quote:

Originally Posted by Calypso

This is excellent advice, SageMother. The mortgage companies try this tactic (and get away with it) so often because they (correctly) assume that on closing day the buyers will feel too committed to their new home to get up and walk out. If more people did just that, mortgage companies might cool it with the last minute extra charges.

That is true. I know a lot of people who have run into similar situations and went ahead with the purchase because they thought it was too late to back out.

[katharina]

Quote:

Originally Posted by SageMother

This is something to consider when you go to closing. If your purchase isn't going to live up to the costs given, it might be best to just walk.

We pretty much knew what our closing costs would be, but were also
prepared for a fluctuation of a few hundred dollars at the time of closing.
It actually turned out to be a lot less than we were expecting.