When a lender is preparing a good faith estimate, the financial institution will create a list of additional costs, and each fee is associated with a level of tolerance. The costs can be related to numerous services, such as appraising the property, initiating a wire transfer, homeowner’s insurance, analyzing the borrower’s credit report, underwriting the loan and title insurance. Here, Acuity provides the third of four parts to clearly define Tolerance Cures and the Good Faith Estimate.
Some lenders will provide a list of lawyers who can create and modify the terms of the loan and the closing statement. If the buyer chooses an attorney that has been approved by the financial institution, the costs are subject to a tolerance of 10 percent. When the borrower selects a lawyer that was not on the lender’s list, the attorney’s fees are not associated with any tolerance.
Once a state government records information about the property transfer, the agency typically charges a fee that is less than $700. This cost is associated with a tolerance of 10 percent.
An experienced inspector will generally analyze the foundation of the home, the roof, the insulation, the siding, the windows and the house’s plumbing, and in some cases, the individual may create a list of the estimated prices of necessary repairs. The costs of the evaluation usually do not have tolerance, but if the inspector has been chosen by the lender, the total price of the services has a tolerance of 10 percent.
An extensive analysis showed that more than 20 percent of lenders help buyers to obtain discounts when the borrowers purchase an insurance policy for the property. The monthly price of insuring the home does not have tolerance.
Generally, the costs of valuating the house are not associated with tolerance. In spite of this rule, some companies will provide written guarantees that indicate that their prices will not change after a GFE has been provided.
In today’s market, you need an agile title and closing partner that has its feet on the ground. Contact Acuity National Real Estate Solutions, a Freibert & Mattingly Title Group LLC company, today at 502.238.7500. To learn more about Acuity’s services, visit www.ftgclosings.com.