Lien Certificate Fee on Good Faith Estimate - What's That?
The good faith estimate tells you what you can expect to pay on closing day, when you close / settle on the house. As you have no doubt realized, it's basically a laundry list of fees that the lender charges to originate, process and finalize your mortgage loan. And there's a lot of obscure charges on the list! Basically, anytime a person performs a task, or touches a piece of paper in any way, you get charged for it.
The fee you have mentioned above relates to lien certificates and judgment searches, along with the courier service that delivered these documents. It sounds like they are lumping several things together as one line-item on your good faith estimate list.
Basically, the lender is researching the property to make sure there are no liens against it, or judgments (court cases and disputes) against the property. For example, if a builder or contractor places a lien against the house -- because they weren't paid for their work or whatever -- it can interfere with the title transfer. So the lender gets a certificate of liens relating to the property. The courier fee means they paid a courier service to expedite the delivery of these documents.
You should ask the lender about this line-item, if you still have questions. They are obligated to explain each item on the good faith estimate.
You should also bear in mind that your actual closing costs will probably be higher than the amount shown in the good faith estimate. Lenders are required by law to provide you with a good faith estimate, so you'll have a rough idea of what your closing costs will be. This is mandated under the Real Estate Settlement Procedures Act (or RESPA). But it's common knowledge that lenders often "low ball" the up-front estimate in order to lure in borrowers. That's just the way this industry works, love it or leave it.
I hope that helps. Good luck.
Labels: Home loans
posted by Brandon at
9:42 AM
