Piles of Paperwork Hiding the Closing Costs
One of the main complaints of buyers is the mountains of paperwork required by lenders....they could easily get writers cramp just filling in forms before they ever get to the closing table. So it's easy to understand why they walk away from the lenders office feeling a little dazed and confused. Once such buyer recently emailed me after leaving his lender with the question, Can you tell what how much the closing costs will be? As a real estate agent this is one of those questions that we're not suppose to answer....we're not suppose to offer information about the lending process and loans. So this was my response:
That is a good question for your lender and closing attorney. I can tell you that you will be asked to sign a settlement statement at closing. Your closing agent will go over this statement in detail with you and answer any questions you might have.
There are two sides to a settlement statement: sellers and borrowers. This is a detailed summary of all the costs related to the closing of the property and which side will be paying for each particular cost.
Every loan is different just as each real estate transaction is different and the fee's may vary so it's impossible for me to give you an amount of closing costs but your lender or closing attorney should be able to help.
I believe it best to direct a client to the source for information when they ask questions that ethically I'm not permitted to answer but hope that directing them towards the settlement statement might help the sort through the mounds of paperwork to find their answer. Do any of you have an alternative approach to this question about closing costs?
Post Written By: Brock Robinson / State Wide Realty
Picture taken by: Ashley Fisher