Buying a home? Misc. fees could cost you thousands. Here’s what to expect.
CHOOSE A TRUSTED and RECOMMENDED MORTGAGE PROFESSIONAL! I read this article this past Sunday. I was astounded that this even happened. As a mortgage professional, it is my job to prepare an accurate Lending Estimate (formerly known as the Good Faith Estimate) for a borrower. I’m responsible for quoting all closings costs, most of which aren’t even lender fees. If I get it wrong, I/the lender am/is responsible. The article does talk about Home Owner Associations in which the lender may or may not find out certain info. Each lender will have their own requirements of what they want to know about a particular HOA. So I recommend buyers and their attorneys vet the HOA about special assessments, budgets and reserves. But closing costs? This is my job; to disclose all costs associated with closing on a loan, refinance or purchase.
by Danielle Braff Chicago Tribune
You’ve likely heard of closing costs when buying a home, but this umbrella term includes a whole host of expenses — from appraisal and attorney fees to transfer taxes and title insurance — that you may have to pay before you get the keys to your new abode. And the jig’s not up once you own. Depending on the type of property, you may be shelling out other unexpected sums, such as special assessments. If you’re planning to purchase a home, make sure you plan ahead for these often-overlooked fees.
That’s something Nors Beatriz, 54, wished she’d done before buying her first home, in Chicago’s Albany Park neighborhood, about 12 years ago.
The artist and jewelry-maker saved $20,000 for a down payment on a $235,000 home, but she wasn’t prepared to pay an extra $10,000 in closing costs. (According to online real estate marketplace Zillow, closing costs are typically 2 to 5 percent of a home’s purchase price.)
“There were so many more fees than I expected,” Beatriz said.
“I hired a lawyer who was supposed to look over the contract, but he never read it, and a couple months later, I found out that I had three mortgages — and they were balloon mortgages,” she said.
She struggled to get them consolidated, but then the market crashed, and her bank went out of business.