New Changes to Closing Procedures

Because current closing procedures have produced so many problems and complaints, HUD has indicated it may adopt a two-tiered system (not yet in effect as of this writing). Under this plan there would be two kinds of closing costs:

■ GFE—Good Faith Estimate. This is pretty much the old system where the lender can give you an estimate that may or may not prove to be accurate.

■ GMPA—Guaranteed Mortgage Package Agreement. Here the lender guarantees that the closing costs will be no more than a set amount. However, that amount could be higher than the estimate given under the other plan.

In addition, there is some thought being given to identifying the various lender fees (which compose most of the closing costs for the buyer) and codifying these. Nevertheless, it behooves every buyer to examine what the closing costs might be to see where they can be reduced.

Here's a list of typical closing costs when purchasing a home. (Note: You probably won't have all of these; you may have most of them.)

0 0

Post a comment