How do I avoid paying junk fees associated with obtaining a mortgage?
You can avoid paying junk fees associated with obtaining a mortgage, by simply purchasing a home with Liz Moore & Associates. We have “preferred” lenders who offer mortgage services, which include free credit reports and no junk fees to Liz Moore & Associates’ buyers. However, if you are not fortunate enough to have a Liz Moore & Associates office in your area, I would advise that you review your Good Faith Estimate carefully. The law requires that you receive this document within three days of the Lender receiving your application. This document is an itemization of all anticipated fees and expenses. It is important to ensure that you are provided with a “Good Faith Estimate” as opposed to a summary of lender fees. If you are not pleased with these charges, ask questions as to what is the purpose and recipient of the fees. If you are still not satisfied, the “Good Faith Estimate” is a great tool to use as a guide for comparing fees associated with other lenders. You can also use this document at closing to reconcile fees with your HUD 1 sheet. You may discover that some of the numbers may have changed, due to several prorations such as, day of closing and/or amendments. Please note the adjustments if any should be minimal. If you should have concerns with the adjustments ask the lender to justify charges or request that they be removed or lowered. However, it is important to understand and approve all charges prior to signing each document.

Posted By: Barbara Randall on Saturday, November 14, 2009