Consumer-Friendly Closing Statments Mandated

By
Real Estate Services with Charisma Media Group, LLC

HUD

Heads  Up, Bluffton South Carolina Home Buyers 

The Department of Housing and Urban Development will require that closing costs be spelled out on a new, consumer-friendly version of the good-faith estimate form. Technically, lenders are to furnish borrowers this information within three days of applying for a mortgage. 

A new HUD-1 form will be in force, effective January 1, 2010. The new forms permit borrowers to compare good faith estimates with the actual closing fees. 

There are three categories of fees--

Fees that cannot increase from the good-faith--these include:

  • Lender mortgage origination 
  • Underwriting charges 
  • Lender points 
  • Local transfer taxes

Fees that can increase as much as 10 percent from the good-faith estimates, include:

  • Appraisals
  • Title insurance
  • Recording fees from local governments.

Fees that can increase include

  • Escrowed Initial deposits 
  • Daily interest charges on the loan
  • Home owners insurance

Now is a good time to purchase a home in Bluffton, Sun City or Hilton Head.

 

Posted by

John March

843-368-9146

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Bluffton, Hilton Head Island Real Estate