Comments on: The Simple Dollar Morning Roundup: Good Faith Estimate Edition http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 22:03:21 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: kingking http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/comment-page-1/#comment-32513 kingking Wed, 06 Jun 2007 23:21:34 +0000 http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/#comment-32513 I completely agree with Alisha, watch out for the good faith estimate, it's usually not worth the paper it's printed on. My husband and I have purchased 5 homes through the years, and none of the closing cost estimates have been any where close to the actual figure. If you close near the first of the month, the interest you pay is higher (for a complete month versus partial) and usually isn't reflected in your GFE. Also, you will most likely have to pay an estimated full year's hazard insurance and property taxes into escrow, in addition to a cushion in case the mortgage company's estimate is low. My advice is to have an extra three to five thousand available the day prior to closing so you won't have to scramble transferring money for your cashier's check. Good luck. I completely agree with Alisha, watch out for the good faith estimate, it’s usually not worth the paper it’s printed on. My husband and I have purchased 5 homes through the years, and none of the closing cost estimates have been any where close to the actual figure. If you close near the first of the month, the interest you pay is higher (for a complete month versus partial) and usually isn’t reflected in your GFE. Also, you will most likely have to pay an estimated full year’s hazard insurance and property taxes into escrow, in addition to a cushion in case the mortgage company’s estimate is low. My advice is to have an extra three to five thousand available the day prior to closing so you won’t have to scramble transferring money for your cashier’s check. Good luck.

]]> By: Alisha http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/comment-page-1/#comment-32404 Alisha Wed, 06 Jun 2007 17:11:03 +0000 http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/#comment-32404 Watch out for that "Good Faith Estimate." My husband and I just bought our first house (closed last week), and the actual closing costs were almost double our "GFE," and 20% more than the MAX we told them we could pay. We found out our actual closing costs at 3:45 on Tuesday, and we were closing at 2 pm the next day. Oh, and that has to be in a cashier's check. In an hour and fifteen minutes, we scrounged around, transfered money from all our hidey-holes, begged from our parents, and got the cashier's check. GFEs don't have to take into account the settlement agent's fees, title listing fees, and about a zillion other things I didn't even recognize. There are also basically no laws governing their accuracy, as far as I can tell. We would have argued, fought, insisted that they stay within 30% of their estimate, but they don't give you any time--that's why they call the DAY before. Oh, and then the 30-year-old refrigerator in the house we bought died the second day we were in the house. Emergency fund? What emergency fund? So we're having a very frugal month or so. :) Good thing we don't have any kids and the cat and car are both healthy (fingers crossed). Good luck with your house---but consider yourself WARNED. Also, you *cannot* put any of the closing costs on a line of credit of any kind. Just FYI. Watch out for that “Good Faith Estimate.” My husband and I just bought our first house (closed last week), and the actual closing costs were almost double our “GFE,” and 20% more than the MAX we told them we could pay. We found out our actual closing costs at 3:45 on Tuesday, and we were closing at 2 pm the next day. Oh, and that has to be in a cashier’s check.

In an hour and fifteen minutes, we scrounged around, transfered money from all our hidey-holes, begged from our parents, and got the cashier’s check.

GFEs don’t have to take into account the settlement agent’s fees, title listing fees, and about a zillion other things I didn’t even recognize. There are also basically no laws governing their accuracy, as far as I can tell.

We would have argued, fought, insisted that they stay within 30% of their estimate, but they don’t give you any time–that’s why they call the DAY before.

Oh, and then the 30-year-old refrigerator in the house we bought died the second day we were in the house.

Emergency fund? What emergency fund?

So we’re having a very frugal month or so. :)

Good thing we don’t have any kids and the cat and car are both healthy (fingers crossed).

Good luck with your house—but consider yourself WARNED. Also, you *cannot* put any of the closing costs on a line of credit of any kind. Just FYI.

]]> By: guinness416 http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/comment-page-1/#comment-32403 guinness416 Wed, 06 Jun 2007 16:55:31 +0000 http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/#comment-32403 I'm wary of "curb appeal" estimates, they're all over the map. I will say a house around the corner from me actually lost a few potential buyers because of the large tree outside - between it and the canopy on the porch, the front room was way too dark. I guess may be different for suburbanites where they have a largish garden. We have a mature tree at the back of our garden, but didn't give it a second thought when we initially saw the place. I’m wary of “curb appeal” estimates, they’re all over the map. I will say a house around the corner from me actually lost a few potential buyers because of the large tree outside – between it and the canopy on the porch, the front room was way too dark. I guess may be different for suburbanites where they have a largish garden. We have a mature tree at the back of our garden, but didn’t give it a second thought when we initially saw the place.

]]> By: martha in mobile http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/comment-page-1/#comment-32390 martha in mobile Wed, 06 Jun 2007 16:19:35 +0000 http://www.thesimpledollar.com/2007/06/06/the-simple-dollar-morning-roundup-good-faith-estimate-edition/#comment-32390 Re: landscaping -- it is certainly true that landscaping adds value, but a nice tree near a fence in a backyard is not going to add $5K just because that is what it would cost to buy it/plant it. A beautifully landscaped yard may add even more than $5K -- and it will cost almost that much to install and maintain. Re: landscaping — it is certainly true that landscaping adds value, but a nice tree near a fence in a backyard is not going to add $5K just because that is what it would cost to buy it/plant it. A beautifully landscaped yard may add even more than $5K — and it will cost almost that much to install and maintain.

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