Also in this playlist...
This transcript is automatically generated
Trying to get a loan for all -- -- -- these days and closing costs.
They're jumping 37%.
It's not making it any easier.
But to help prepare you for the -- homebuyers apparently are going to get be getting more accurate good faith estimates.
With me is David Leon -- the president GF -- dot com David welcome.
Let's let's start by telling people what that good faith estimate it is.
The good thing that's uniform is the foreign that you get when you buy a home.
And it and it lists all of the prices of all the closing costs.
And the different types of fees that you have to pay for a ticket per home closed and the dirty little secret as.
It's the prices you're supposed to pay right and you get this form when you fill out the paperwork and -- speak.
Come pretty hard on the heels of filling out the paperwork and then you get the finalists of cost when you close the deal when you sign the paperwork for the house but.
As you know David these numbers are often very different.
Back myself I had a 2500 dollar difference when I bought my home so what happened.
That's not a good feel like.
No it's not and what happened is is -- rest -- underneath hide.
-- -- came in and basically what they said as we want to we want to make sure that the consumers not getting taken advantage of.
Any more yeah that's what the -- was all about with the help consumers know what they were getting.
But the reality you say is that.
The costs of closing a deal are even more expensive and it's because of rest that absolutely and a recent study just -- this last week that the average cost for 200000 dollar home.
Went from 2700.
Dollars to 3700 dollars this year from my house -- mortgage same thing.
And you're paying this much increase costs isn't part of this just the industry trying to make a little extra -- I think that's a good question because what's happening is the inflation of the prices.
Are there are several reasons for that and one of the reasons for it is because they have a everything from.
The inspections to.
The they have to -- a third party.
Liability the banks that are in charge about -- have a liability of 10% price tolerance so what that means there's.
If you go have a home inspection done on your report it says 500 dollars.
That the bank is liable.
If it's a thousand dollars they have to pay the difference anything over 10% with an -- with the new -- what's happening is the inflation of prices.
Is what's causing that increase that's one of that one of the reasons for.
-- -- -- -- give me some practical advice here because really at the end of the day I just to wanna pay these junk fees.
That these banks in these mortgage operators put on the loans and I've seen it all before -- let me tell you copying fees couple hundred bucks.
-- they sense something across town using FedEx more money what you -- negotiate and what kind of leverage do I have at the closing table.
We're all sitting around signing all the paperwork.
It's a great question and in the process and the consumer should be looking at one thing they should be looking at every single item everything is -- -- Ask questions with a one of the great things about the new good faith estimate form is that at the bottom of the last page there's a shopping cart.
And you can actually utilize that changes feet every bank every lender has to use the same -- -- -- form.
So can't compare exactly every every single one is exactly the same but has different prices.
So that the lenders have to be very careful because if their prices are too high then they lose -- -- to somebody else who has the prices at a more realistic level.
You can shop around obviously and also you want to compare.
The good faith estimate.
To the real costs you're facing at the closing table.
And make sure that there's not big disparity you're not paying more because remember you have the power you can walk away if you think you're being charged too much.
And let me tell you nobody wants to see you do it at that point right.
Absolutely and from some of the problems with the and they different -- of inspections and land surveys.
I'm an -- title insurance and title -- there's -- the prices range so much that if you look at people in the area.
Shop around in the area look and see what people are are charging at home inspection could be 300 dollars here in New York City for an average size home it could be 900 dollars.
So you shop around that's one of the best things to do as a consumer and keep those costs.
I'd love of inspections -- -- they've kept me away from some big mistakes in the past I have to tell you.
Did what -- -- when your web site that will help me understand the process.
Well what we do we what do we actually work with the banks directly we what we do -- we help them with their fees because what's happening with the inflated.
Numbers on -- charges for each of the sections that's getting inflated.
They have bad they just don't have the right information because the banks have never had to do this before.
They've never been liable.
You know zero to 10% price tolerance on this entire loan.
There are actually people out there consumers that I've heard about over the last few months they're actually getting paid for their loan.
Because -- the lender is making mistakes big enough.
Exactly is -- fifty actually have to pay the consumer.
-- my love that I don't let -- go ahead yeah it's an interesting thing you know I'm.
-- a check -- my back didn't -- you for your time today really appreciate your help the website is called GF TV dot com interesting stuff thank you.
Filter by section