Usually when a customer gets a loan home offer, add on costs haven’t shown up as yet. When the customer is ready to sign on the dotted line, the surprises come in. They could be in the form of processing charges, administration fee and other mysterious fees.
The customer, who may have initiated a bargain buy for his home, which is time bound, may not be in a position to shop around for another loan and may be forced to pay the extras. Federal officials are now working on regulations to force financiers to disclose all costs and provide good faith estimates. Some banks are also taking the lead and doing this on their own initiative.
The wise thing for you to do would be to insist on disclosure of all costs right from the beginning and ask the financier to provide it in writing.
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