mortgage closing costs ?

Question

Hi,
I'm getting a VA loan for a home whose purchase price is 175K (I'm paying 2PTS. to get the rate to 5.5%). My lender says they charge NO lender fees for VA loans. Sounds fishy to me.
In the good faith estimate, I have a question about line 1101 which is "settlement or closing fee". The listed cost for this is $600. Title insurance (line 1108) is listed as $900 and the recording fee (line 1201) as $110.

The estimated closing costs are listed as $2014 without the prepaids or discount points included. This bank has to be making money off me but I can't figure out how; this makes me uneasy. Any answers? Thanks in advance!

Answer 1

ARG! I can't believe a real estate agent hasn't answered or the one's that are have not pointed out that a veteran is prohibited from paying the escrow fee. The seller must pay the entire escrow fee (seller & buyer's portion) on all VA loans. Settlement or closing fee is an escrow fee. One & the same.



Remind your lender that a veteran is prohibited from paying an escrow or settlement fee. You are also prohibited from paying for a pest inspection if your lender requires one.



You haven't stated what they remaining $404 in closing costs are... The total of your closing costs should now drop by this $600 for a settlement fee. Recording fees are charged at the county recording office. It is often $X for the first page & $Y for each additional page. $110 is not out of the norm.



http://www.vainfo.net/va-closing-costs_2.html

Answer 2

Of course the lender/broker has to make money off you some how in order to stay in business.



Do check to make sure that any fees you are being charged are "allowable fees" according to the VA lending guidelines. A lender should no better than to try and charge you for something they aren't allowed, but sometimes they use their standard fees which can cause they to violate the VA's rules.



If you are paying one point discount and 1 point origination you are getting a great deal at 5.5%.



The fees you are quesioning are not "lender fees". They are third party fees.



Take the deal in its totallity. What rate is available with 0 points? How long do you plan to be in the home or loan? If you think you will keep that loan for 10 years or more you may be advantaged in buying the rate down. If not, you may be paying too much in closing costs.



If you have a settlement statement, it may be to late to change anything unless you want to delay closing, but if you are "uneasy" about the deal, it would be better to delay the closing and get satisfactory answers then just pony up the cash and regret it for the rest of the time you own your home.



Good luck with your new home.

Answer 3

VA home loans are a unique way of extending support to the US war veterans, who committed their lives in safeguarding the interests of the country. Therefore, understanding these loans is beneficial. VA housing loan program provides financial assistance to veterans so that they can purchase home at a favorable rate of interest and convenient loan terms. Loans provided by the VA are fixedproperty in a safe locality. Next, the veteran has to go to a lender and apply for a home loan. VA guaranteed loans are provided by private lenders that include banks, mortgage companies and savings and loan associations. No prepayment penalties and long amortization terms are another advantage of these loans.

Answer 4

I have been to about 20 closings in the last several months, but they have all been in Mississippi. Settlement or closing cost usually refer to attorney fees. Your bank or agent usually picks the attorney, or "title company" so there is not much you can do about that. But a $110.00 recording fee is very high to me. I would definitely question that. Again I am not sure where you are but in Mississippi I would question that.



Also title insurance is usually based on a set fee plus so much per thousand. The attorney I usually deal with use $50.00 fee plus $3.00 per thousand. Using my formula you would pay about $575.00 in Title Insurance, but I would ask about the specific formula regardless.



As I write this I am looking at a HUD dispersement form and the recording fee is $25.00 for this particular closing.



I hope this helps you. If you have any follow up questions, I would be happy to help.

Answer 5

This does sound extreme, in spite of the incontrovertible fact that it is incredible - reckoning on your loan deal. Are you paying loan factors to lessen your interest fee? which would be interior the last fees. Are you escrowing quite a few months of tangible assets taxes and homestead proprietor's coverage (this is known)? which would be interior the last fees. On a house that value, identify on my own would be over $2,000. The survey could be as much as $500. So, each and every last is distinctive, yet you'll be able to desire to comprehend what you're procuring. take a seat jointly with your Realtor or lender or identify rep and have them pass line via line to ensure all is right - and no fluff. good success and suited desires.

Answer 6

Unless your lender is committing fraud in another way, closing costs look reasonable for a VA loan.

Answer 7

I have a friend that is a loan broker and she is very good and competitive with her offerings...You might try getting a quote from her and see if she can beat it....



Her contact info is:

Chloe S Figueiredo



Senior Mortgage Planner



CF Financial Group



in association with Capital Line Financial/Skyline Financial



26840 Agoura Road



Calabasas, CA 91301



805.358.4600 (c)



818.657.2208 (o)



805.830.1555 (f)



[e-mail]



www.ChloeFigueiredo.com



I hope that helps....



Ty

Answer 8

points are the bank's profit.