Just went through my main website and updated the Closing Costs per State put out every year from Bankrate. What I saw was shocking! In the State of IL there was a 36% increase over 2009.
The average costs in 2010 are now $3505 which was an increase of a whopping $876 per buyer! The super sleuth in me says 'where is that money going and to whom?' Who's ripping off the consumer now? Why the increase? The entire industry was just overhauled to keep costs down and to protect the consumer. More disclosure helps protect the consumer right? Hmmm.
Well for those of you that say, it's those rich loan officers driving their Porsche's, let me clarify that the loan costs only went up a measly $140. (Gas money maybe?) So, nope, it's not the loan officers!
How about that we have duplicate costs from the new and improved Good Faith Estimate? Every time something is changed - have to fill out another form - of course, for the protection of the consumer!
How about appraisal fees? FHA appraisals went up $150 in my area and that doesn't include the wonderful and constant re-inspects they are always doing at another 'trip charge' of $100 to $150. Cha-ching, let's protect the consumer all right. Nonsense!
The last re-inspection I had from an appraiser was to be sure the water was turned on because he forgot to check when he appraised my foreclosure listing. I bet no one mentioned to the buyer that there would be an additional charge right?
Just when buyers need a break with closing costs and having their hard saved down payment portion whittled away by nonsense fees. The economy could use all the home buyers we can get right now!
Stop trying to make it tougher to buy a home!