Can I get a firm commitment for closing costs?

"When buying a new home, is it usual or possible to get a firm commitment for total closing costs, or at least a 'it will not be higher than ....'?" -Mark A

When applying for a loan most lenders will provide a breakdown of your estimated costs to purchase a home in your price range. As a result you get a general idea of the costs associated with the loan. Lenders cannot give you anything more formal than that until you have selected a property and committed to them due to the burden placed on the lending institution.

New laws are in place to protect the consumer. These laws require a lender to provide you, once you commit to giving them your business, a formal Good Faith Estimate of charges. The downside? These estimates are often higher than the estimated charges you received before. Why? Because the lender must cover themselves in the event the title services, taxes and other fees out of their control were to come in higher then anticipated. The law requires that certain fees not vary more than a certain percentage than what you were quoted.

The key here is to work with a lender you can trust and will guarantee their fees to you in writing. Your friends, family and Northern Virginia real estate agent can provide you with a recommendation. There is nothing better than being referred by someone who has had a great experience!

Speaking of referrals....do you know anyone looking to buy or sell? Your referrals are the lifeblood of my business! I live to serve you, your friends, family and coworkers real estate needs!