The Truth About Closing Costs

There are legitimate costs in funding a loan. There are a number of people and organizations who must work diligently to put together the mortgage puzzle and run down the paperwork that satisfies the underwriter's conditions nessary to fund the loan.

But as most of us know after reading of recent predatory lending cases, several large lenders have agreed to pay thousands of borrowers who were improperly charged the highest rates and exhorbitant fees for their loans.

Lenders who engaged in unlawful mortgage lending practices did the following:

  1. Misrepresented loan terms.
  2. Charged hidden or excessive fees.
  3. Inflated home appraisals.
  4. Fabricated borrower income statements.

In California, an estimated 78,000 households that had mortgages with Orange-based Ameriquest Mortgage Co. are eligible for restitution. Their claims amount to $51 million dollars, an amount the company has agreed in court to pay to settle the claim.

So what is the lesson to be learned?

Use a lender such as Express Lending to get detailed disclosures of the details of your loan and who has a representative available to ANSWER TRUTHFULLY any questions you may have about your mortgage.

We guarantee an up-front disclosure of your rate, term, fees, and details of the loan process. Nothing is hidden. There are no surprises at closing. Feel free to give us a call (1-714-328-0051).