Wednesday, August 23, 2006

Chalk One Up for the Local Guy

As a local doing business locally, I sometimes get the question, "How is my service any better than one of the big internet lenders?". Well one way that my service is better just dropped into my lap in an email newsletter today...

Flaws Seen in Survey of Closing Expenses
Patriot-News (PA) (08/11/06) ; Miller, Dan

Some real estate professionals in Pennsylvania disagree with a survey that pegs average closing costs statewide at $3,175, insisting that the calculation includes "junk fees" that are not imposed by every lender. Homesale Mortgage Services President Jennifer Goldbach says it is difficult to calculate a meaningful average because of the numerous variables that must be considered, adding that it is possible to calculate five different closing costs for a single house. senior reporter Holden Lewis says only the fees charged by Internet lenders were included, but he acknowledges that local brokers produce more accurate first estimates than online lenders. According to Lewis, "Some online lender based in Orange County, Calif., probably doesn't have the title insurance formulas for every county in the country."

That's right, local brokers know the fees for their market, and can quote a much close estimate from the beginning of what the various closing costs are going to be so that there are no surprises at the closing table. Especially in New York City where there are exceptions and some specific circumstances based on property type, such as the NY city and state mortgage recording tax doesn't apply to coops, but Mansion Tax does.

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