Closing Costs and Banks are Disgraceful

[firegurl]

I am a mother of twins too!

I will feel better about the closing costs if I refinance because it's what I chose and not chosen for me. At this point, I am closing next Thursday (10/31) and still have no Hud statement or breakdown of Title Insurance costs. Plus, I have the pleasure of paying for all this paperwork that I don't even have. They require closing cost funds to be wired 48 hours in advance, but I have no paperwork.....wonder why I am so stressed????

As far as the free credit report that everyone is entitled to, that is not a trimerge report that is used when obtaining a loan. That is usually a single agency report. You also can't supply your credit report to the lender and a lender is not entitled to that report on your behalf. It has to be pulled from a third party service. If you signed paperwork in May, $200 seems a little high but I don't know their agency and what they had to do on you loan. The initial report has expired at this point, I would imagine most of the file had to be updated. That's at least 2 credit reports. If you have 800+ scores then you are probably going through an automated underwriting system. Everytime credit is imported to that system, it adds a cost to the credit report fee.
You said you are concerned about not receiving a HUD yet your closing is over a week away. Most of my closing take place in a much shorter time frame but I almost never have a HUD prior to the day of closing. Its really not unusual. The last day of the month is the last day that purchases are eligible to close and the loan officer still gets credit for that month. There are lots of closings that day and people are swamped the entire week. More specifically, the docs department is usually crazy and until they get the docs.out, you won't get a HUD.
One last thing for reference-the fees shouldn't change too much from your GFE. Most fees have either a limited tolerance for changes (10%) or no tolerance, meaning no changes allowed.

 

[elgerber]

As far as the free credit report that everyone is entitled to, that is not a trimerge report that is used when obtaining a loan. That is usually a single agency report. You also can't supply your credit report to the lender and a lender is not entitled to that report on your behalf. It has to be pulled from a third party service. If you signed paperwork in May, $200 seems a little high but I don't know their agency and what they had to do on you loan. The initial report has expired at this point, I would imagine most of the file had to be updated. That's at least 2 credit reports. If you have 800+ scores then you are probably going through an automated underwriting system. Everytime credit is imported to that system, it adds a cost to the credit report fee. You said you are concerned about not receiving a HUD yet your closing is over a week away. Most of my closing take place in a much shorter time frame but I almost never have a HUD prior to the day of closing. Its really not unusual. The last day of the month is the last day that purchases are eligible to close and the loan officer still gets credit for that month. There are lots of closings that day and people are swamped the entire week. More specifically, the docs department is usually crazy and until they get the docs.out, you won't get a HUD. One last thing for reference-the fees shouldn't change too much from your GFE. Most fees have either a limited tolerance for changes (10%) or no tolerance, meaning no changes allowed.

Exactly. The HUDS on our closings are rarely out earlier than the day before closing. Especially at the end of the month.

 

[pooh6890]

Exactly. The HUDS on our closings are rarely out earlier than the day before closing. Especially at the end of the month.

That being said, how am I supposed to wire fund 48 hours before closing? The title company required that according to their paperwork.

 

[elgerber]

That being said, how am I supposed to wire fund 48 hours before closing? The title company required that according to their paperwork.

Often times people are not actually held to those numbers. They will also refund you, if you wire too much.

 

[pooh6890]

Often times people are not actually held to those numbers. They will also refund you, if you wire too much.

I was sent paperwork that I had to fill out with bank information to be sent back a while back. Will they send a wire request to my bank that I authorized them to withdraw the amount without showing me a statement? That seems like a pretty poor way of doing business. I am going to call them.

 

[DebbieB]

Exactly. The HUDS on our closings are rarely out earlier than the day before closing. Especially at the end of the month.

That's what happened to me. My closing was 7/31/12, I needed to get to the bank to get the certified check for the down payment. They finally gave me a copy of the HUD with the figures the day before only because I kept calling them. I wanted to go to the bank on my lunch hour. I just needed to present the certified check at the closing but they told me to bring my checkbook in case something was discovered. Nothing was. The attorney hand wrote the check to the seller (she did not have a mortgage) at the end.

 

[pooh6890]

That's what happened to me. My closing was 7/31/12, I needed to get to the bank to get the certified check for the down payment. They finally gave me a copy of the HUD with the figures the day before only because I kept calling them. I wanted to go to the bank on my lunch hour. I just needed to present the certified check at the closing but they told me to bring my checkbook in case something was discovered. Nothing was. The attorney hand wrote the check to the seller (she did not have a mortgage) at the end.

Their instructions say they DO NOT accept any type of funds except wire transfers from my bank to their bank...and if I don't have an amount to tell my bank...how can that happen or how can I do it in the allotted time? Really? One day before is absolutely unfair and so unprofessional.

 

[pooh6890]

Often times people are not actually held to those numbers. They will also refund you, if you wire too much.

Maybe it's me, but wire too much? What kind of company is that? I can't believe that people are treated like this. How can they expect me to close and give them the funds and they are not following their own rules?

 

[elgerber]

Maybe it's me, but wire too much? What kind of company is that? I can't believe that people are treated like this. How can they expect me to close and give them the funds and they are not following their own rules?

Yes, too much. People often wire, or bring certified checks, for slightly more than the estimate, just in case. That way they are covered, and have enough funds there to close. Checks are cut back to borrowers if the actual final numbers are less. Numbers are often adjusted on the day of closing, for different reasons as well. This is the way the industry works. I'm sorry you think it's so unprofessional, but it's the nature of the beast these days, this is a tough industry and most of us do the best we can, but we have a lot of hoops to jump through to get loans closed.

 

[pooh6890]

Yes, too much. People often wire, or bring certified checks, for slightly more than the estimate, just in case. That way they are covered, and have enough funds there to close. Checks are cut back to borrowers if the actual final numbers are less. Numbers are often adjusted on the day of closing, for different reasons as well. This is the way the industry works. I'm sorry you think it's so unprofessional, but it's the nature of the beast these days, this is a tough industry and most of us do the best we can, but we have a lot of hoops to jump through to get loans closed.

I really do appreciate your input. I think I am just stressing with one week to go and not knowing numbers and date makes me crazy. I have worked in accounting for 34 years and we are always expected to know all numbers and filing dates. IRS doesn't want estimates...lol

 

[elgerber]

I really do appreciate your input. I think I am just stressing with one week to go and not knowing numbers and date makes me crazy. I have worked in accounting for 34 years and we are always expected to know all numbers and filing dates. IRS doesn't want estimates...lol

Trust me, I wish it were better on our end too! We don't like stressing you out, and it really stresses us out as well! Good luck to you next week, enjoy your new place!!!

 

[firegurl]

If only borrowers knew what processors go through in the last few days of a loan. I would love to have a HUD even a day before but when I have to rely on an underwriter to review my file, I am on their timeline. I have 3 purchases closing next week. None of which are ready yet, close but not a done deal. After putting in 55 hours this week, I am done.

 

[elgerber]

If only borrowers knew what processors go through in the last few days of a loan. I would love to have a HUD even a day before but when I have to rely on an underwriter to review my file, I am on their timeline. I have 3 purchases closing next week. None of which are ready yet, close but not a done deal. After putting in 55 hours this week, I am done.

A virtual toast to you! That was me last week. For some reason all my files closed mid month! That is the ones that did close. I have a few still in limbo...

 

[firegurl]

A virtual toast to you! That was me last week. For some reason all my files closed mid month! That is the ones that did close. I have a few still in limbo...

We have had a tough month, its our busiest month ever, and my processing department which was 4 people had one go out on maternity leave and one leave for surgery and 8 week recovery. We hired 2 temps but there is a pretty big learning curve.
Although I feel terrible for leaving my boss to go to WDW in 14 days, she is awesome and I need this vacation to get me through the rest of the year. Luckily my vacation was still approved because I booked it so long ago.