Camila's Loan Estimate listed recording fees and a pest inspection fee from a provider on the lender's written list. No changed circumstance occurred. At closing, the combined total of those charges is 7% higher than estimated. Which statement is best?
Correct Answer
C) The charges are generally allowed because those fees fall in the 10% cumulative tolerance bucket
Recording fees and required third-party services chosen from the lender's written list generally fall into the 10% cumulative tolerance category. A 7% combined increase, without more, stays within that tolerance limit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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