too late to argue costs at closing?

kb3228 · Joined: 21 Oct 2009 Posts: 1 1.36 Dollars($)

Would it be worth the money to hire a lawyer for a refinance. I'm worried about increased closing costs. Is it too late once we get to closing? Can I make the lender or broker allow review prior to close?

Niicss · Posted: Thu Oct 22, 2009 2:39 am Post subject:

There is no harm in requesting the lender to explain the different types of fees and other charges related to closing. On knowing the details about the closing, if you cannot afford it, then you should not go for the refinance. If you feel that the lender is asking you for extra fees or illegal fees, you can definitely hire a lawyer and get it reviewed by him/her.

jheard · Posted: Thu Oct 22, 2009 6:31 am Post subject:

You should receive a form HUD-1 which gives you all the closing costs in advance. You can always walk away from the deal until after you have signed the contracts at the closing.

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You certainly do not need a lawyer. Current regulations state that you should get a truth in lending disclosed to you 3 days prior to closing and if there is a .125% difference when you get to the table you legally cannot close. Get a second opionion you are not obligated to close if you feel like you are being taken advantage of all be it you may lose your fees if you paid any upfront. Treat this like a medical procedure....GET A SECOND OPINION!!!!

gmakerley · Posted: Sun Oct 25, 2009 8:51 pm Post subject:

i don't know how anyone can say you don't need a lawyer. that's downright foolish. who's going to close this loan? it better be someone steeped in real estate law - title companies have lawyers on staff. the person who conducts the closing might not have a law degree, but someone who knows the laws of your state had better be on the case.

getting a second opinion might be worthwhile advice, but it would be nice if sonja could have suggested a source for that second opinion. a lawyer would be the perfect "second opinion." who's the first, though?

you won't find yourself getting ripped off, i don't think. if you've got some smarts and have done a little homework, you'll know if something stinks when you review the numbers.

raymond · Posted: Mon Oct 26, 2009 4:51 pm Post subject:

>>Would it be worth the money to hire a lawyer for a refinance.

Yes. I think everybody should subscribe to Pre-Paid Legal and use the service whenever it makes sense. And using it for that purpose makes perfect sense.

>>I'm worried about increased closing costs.

That's a fair concern, and I had the same concern before I entered this Profession. In fact, I scolded my previous Loan Officer (who had done several refinances for me and my family) once I understood how to read HUD-1's, because I realized how many junk fees he threw into our loans. He took advantage of us for a while.

>>Is it too late once we get to closing?

No. You have 72 hours to rescind the contract.

>>Can I make the lender or broker allow review prior to close?

Yes. RESPA says you're allowed to review the HUD-1 a day before you sign it. In real life though, I don't see many HUD-1's being ready that far in advance. However, if a homeowner mandated seeing it the day before, I'd provide it to them and it'd just result in a one day closing delay.

gmakerley · Posted: Mon Oct 26, 2009 6:38 pm Post subject:

raymond, that last point is critical. so many people try to plan ahead and find out precisely what they need at closing on the day before, but so many deals go down without that timing being available. it's unfortunate, but everything has become such a "rush" in this industry, that there's no time to do a rational analysis of what's needed until the last minute any more.

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