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:
- 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.