Posted on: 08th Feb, 2007 08:53 pm
hey guys as some of you know I just applied for a mortgage, I have haerd horror stories of people buying a house and thinking everything is going fine only to be hit with a huge amout of extra expenses at the end. what kind of things can they try to add on and how can I aviod them? thanks
Yes Neko, extra fees are often charged in the form of various fees. These charges are known as hidden fees. There are fees such as courier fee, notary fee, documentation fee, overnight delivery fee, processing fee etc. such fees may be duplicates of another or which may be charged for the loan originator's profit. These are sometimes known as hidden fees.
The best way to avoid paying hidden fees is to go through the Good Faith estimate and then clarify your doubts regarding any fee.
You may compare the fees on the Good Faith Estimate with that on the HUD-1 Settlement Statement which is given to you a day before loan settlement. The fees on the both the statements will vary slightly because the former is an estimate while the latter gives the exact amount payable at the settlement.
Thanks.
The best way to avoid paying hidden fees is to go through the Good Faith estimate and then clarify your doubts regarding any fee.
You may compare the fees on the Good Faith Estimate with that on the HUD-1 Settlement Statement which is given to you a day before loan settlement. The fees on the both the statements will vary slightly because the former is an estimate while the latter gives the exact amount payable at the settlement.
Thanks.
ok so if they don't put a fee on the good faith estimate, or the hud-1 settlement then they can't all of a sudden charge me for something at closing right? or can I refuse to pay for it if they do?
They shouldn't charge you anything other than what is mentioned either in the Good Faith Estimate or the HUD-1 Settlement Statement. And, even if they demand the fee, then first of all clarify for what purpose they have asked for the fee and then pay for it.