In comparing loans for your new Jacksonville home, keep the following in mind. Closing costs are split into two main categories: the closing costs controlled by the lender which vary from place to place and closing costs not controlled by the lender that will not be negotiated.
The Process
You will first obtain a "Good Faith Estimate" of closing costs when talking to a mortgage lender. It is your right to receive a copy although they may send it to you within three business days of your application.
Remember, the mortgage lender is not the only one charging all of your final closing costs, nor do they know what all the costs will actually be. They will normally give you a higher end estimate based on an educated guess from past experience, but obviously some things can be neglected. Plan on actual costs to change slightly than those which are listed on the estimate.
Non-recurring closing costs are items you pay for one time only, with recurring closing costs being those paid monthly or annually, such as taxes and insurance.
The Dangers
There are many ways a lender can charge you costs and be prepared for “bait and switch” routines. Good Faith Estimates are ONLY valid for the loan applied for, so when your loan type changes, so do your costs!
Unfortunately, unscrupulous companies will be waiting for their next victims to call, asking what closing costs their company charges to obtain a good faith estimate. Many will quote “closing costs” and fail to include ALL costs not associated with the lender, which when totaling required escrows, insurances and title fees can amount to thousands.
The Low-Down
The following shows summary of costs you may see when purchasing or refinancing your Jacksonville homes. Some items appearing may not show on your lender's Good Faith Estimate, and lenders are not required to show or charge all of these items. They are listed in the order they may appear on a Good Faith Estimate:
Closing Costs Associated with the Lender.
Loan Origination Fee
Loan Discount
Appraisal Fee
Credit Report
Lender's Inspection Fee
Mortgage Broker Fee
Tax Service Fee
Flood Certification Fee
Flood Monitoring
Document Preparation
Underwriting Fee
Administration Fee
Appraisal Review Fee
Wire Transfer Fee
Warehousing Fee
Closing Costs not associated with the Lender
Closing/Escrow/Settlement Fee
Title Insurance
Notary Fees
Recording Fees
Pest Inspection
Home Inspection
Home Warranty
Loan Tie-in Fee
Sub-escrow Fee
Courier Fee
Homeowner's Association Transfer Fee
Posted by Carey Frankel on
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