New rules aim to get rid of closing cost surprises

If you are a real estate buyer here in Victorville CA you are, most likely, going to need financing for your new home.  Any lender you use is required to provide you with a good faith estimate within 3 days of your making formal loan application.  Your good faith estimate is supposed to give you a fair and accurate break down of all costs involved with your new loan.

Starting on January 1, 2010 loan charges and settlement fees will be spelled out on a revised version of the good-faith estimates.  While banks have been aggressively pushing to avoid these new rules as a consumer there will be some distinct advantages you will now have.  Primarily the old days of closing cost shock should be some what over.  No more sitting down at the closing table to find your loan costs have skyrocketed by $1000-$4000.  Yet there are still some areas to be wary of and as a potential real estate loan consumer you still need to adhere to the Latin phrase “caveat emptor” (let the buyer beware).

With these new rules banks and lenders will have a lot more interest in providing you with accurate and fair figures, if not they could end up absorbing some differences.  Wait…you are not 100% covered in all costs because the actual closing costs are broken into 3 categories.  The first category has you covered, the second category allowing banks a 10% hedge and the third category allowing them to pass the full change in cost to you.  So while things are defiantly looking more positive for the consumer, questions have to be asked otherwise you are still fair game to predatory lending practices.

Check with your lender regarding these new discloser rules, if you don't have a lender we would be happy to recommend some that we personally know are honest and will have your best interest at heart...we know who the best lenders are, we work with them every day.

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