Re: Financial people please help
Tell them you want to LOCK your rate. They may charge you a fee for it, but it is miniscule when compared to the effect a small increase in the interest rate can cost you over the life of the loan. It will keep your interest rate the same through closing. Make sure the lock agreement states that it is good through closing though. <br /><br /> Usually, closing costs include the origination fee, appraisal fees, title work, lawyers fees, prepaid interest, title insurance, as well as various other fees as required. Also, the figures you are getting may also include your reserves. Most banks require you to have "X" amount of dollars in your bank account as reserves prior to closing to cover at least two payments, prepaid insurance(if escrowed), and prepaid taxes(if escrowed). Ask them for a HUD-1 Settlement Statement. It will have the breakdown of all the costs. If you haven't committed yet, they are required to give you a "Good Faith Estimate of Closing Costs" prior to beginning the process. The final amount shouldn't vary much from that unless something drastic happens. <br /><br /> If your credit and other qualifications are as high as they sound, you can negotiate a lot with the bank. Tell them, that you don't want to be charged an origination fee, and that you don't want to pay as high a percent of lender closing costs. If you really feel ambitious, tell them that you don't want any lender closing fees at all. Tell them that they will be getting plenty of money from you over the life ot the loan.<br /><br /> PMI is usually required regardless of how much a loan is for if the amount owed is greater than 80% of the value of the home as appraised. Usually, they will only appraise the house "for the loan" when buying a home. Reason being that they don't want to alert the property assessor to a large increase in value. You could possibly have it reappraised later and have it appraise high enough to not need PMI. PMI is a risk sharing thing that banks use for no other reason than to make more money without charging a higher interest rate.<br /><br /> Fannie Mae is a government program that makes it easier for people to get home loans by securing the debt. In other words, if you don't pay it, the government will pick up the tab. Good luck and don't let the stress get to you too bad. <br /><br />James
<br />Anyway check around a little. Some lending companies are cutting closing costs to compete for loans.
