Monday, July 30, 2012

Ryan Homes KILLED me on the Closing. My GFE was really off.

Hey there.  I just got my HUD-1 form that tells me what I need to bring to closing and I was shocked, to say the least, that they charged me the highest rate that they could for the following fees:

  $500.00 – Underwriting fee line 809   (It says it may range from $100-$500 in the agreement)
   $300.00 – Processing fee line 814  (Range: $100-300)

    $50.00 – Application fee line 815

(UPDATE:....Fees didn't change...see the next recent post to see what happened)

I took the higher rate of 3.625% because of their incentive to give a monetary discount at closing.  I find it pretty coincidental that they charged me such a high rate for their fees and that it is almost exactly what they said they would "discount" me for taking the higher rate.  I remember the loan officer saying that it probably won't ever be that high but they had to let us know anyways.  I figured it would be somewhere in the middle at most.

I feel a bit dupped to say the least.  Damn. 

So in the end?   I feel like I just took a higher rate and didn't get a discount at all at closing.  Now instead of being even close to the GFE that I got...I'm paying more.   How crappy is that?   Goodbye new appliance that I thought I was going to have. 

Well..I guess I figured out why the fees had such a wide range. So Ryan Homes can make you think you are getting a discount to take a higher rate when really...you not.  At least that's what I think anyways.  I could be totally wrong....but I don't know.


Does anyone else have this experience?  Has anyone else closed recently and they were charged the full amount on the fee?


And...don't worry..more photos will come at the end of the week. Our final walk through is THURSDAY!!!!!!  YIKES!  I actually cried last night because I will miss my old home.  GOOD NEWS though...we found a RENTER!  WHOO HOO!  For anyone renting, ezlandlordforms.com is a pretty awesome site to create leases with.  I used Landlord Station for the background/credit report.

UPDATE 3/22/2015 - It's amazing what a few years here and there can bring.  A new baby, a finished basement, a fence in the back yard and a new online work at home type opportunity that I took and totally do not regret.  I'm going to be able to make 6 figures and take care of my family and help change the world (local economy first!)  Tell me that's not awesome!  :)  Oh..and that being a landlor thing? BEST IDEA EVEEER.  Wish I had more houses....oh wait...I will!  Suck up the universe people!  Opportunities are EVERYWHERE!  
 

38 comments:

  1. oh geeze that totally sucks!
    When we locked in our loan officer sent us a "final cost analysis" that lists our underwriting fee at $500 and our processing fee at $300 as well. We haven't gotten our "HUD1" form but I'm hopeing our closing costs aren't different from what is listed in that final cost analysis because we will be screwed in a serious way (no painters, no deck, no fence). The closing costs listed on our final cost analysis were already WAY higher than what we estimated them on our original GFE even with a lower mortgage rate, so now I'm feeling a bit nervous!

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    1. Yah...and I'm sitting here looking at my GFE and it says that my Origination charges CAN NOT increase after I lock in my rate..it's in a big black box and highlighted.....so how did it happen? It's over $500.00 higher than what my GFE says and it says it can not change. What's the deal? I've already contacted my loan officer with my extreme disappointment for the difference. I hope no one else has to deal with this. Poopy.

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  2. Oh, geez…doesn't sound fun. Let us know what your loan officer says. I think this is the worst part of buying a house--the mortgage process!

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  3. I live in New York and I felt Ryan Homes and NVR mortgage were very upfront with my costs. Of course this is NY and closing fees are through the roof anyhow but my 'fees' came in at the lower end of what NVR said was possible. Still, if you'r only paying $850 in total fees to close, be thankful you're not in NY. My fees (and I recieved a $1,400 credit toward fees) were nearly $6,500 total.
    A lot of the fees were excrow, state taxes, upfront PMI; but if I recall nearly $2,000 dollars was fees to cover the legal processing of the property (i.e. NVR. Mortgage Inc.'s fees) Still, based on what most banks in Buffalo charge, and the better rate I recieved, it made up for the fees. Perhaps it isn't as bad as it seems; are you sure you could have gotten a better rate and less fees elsewhere? For your peace of mind, check it out.

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    1. Do you have a blog? Whenever I click on your name, it says it's blocked!

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    2. No no..my fees are way more than that...those are just the ones that I thought were outrageous compared to what I thought it would be. My big concern is why the origination fees have changed. They were in the 2grand range and now they are in the 3grand range. The paperwork said it wouldn't change so I'm confused.

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  4. Yikes! I don't think they have even told us yet what we have to bring to closing. I know how much we owe for the points we bought to lower our rate but that's it. We have a VA loan and the fees are different. Now you have me all worried!

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    1. We have a VA loan as well..have u gotten a GFE?? I've asked for one everytime something changes, and I feel we have our final GFE in hand now that we have our close date. Ask NVR for one...better not to be surprised at closing.

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    2. I don't even think I know what a GFE is, lol! Our mortgage rep did tell us how much we would need to bring to closing when we locked-in our rate. My husband is under the impression that this includes all fees. As of today, we are still in underwriting. They asked for one more document and swore it would be their last request! I'm sure we will find out shortly since we close on Monday!

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    3. a GFE is a "good faith estimate"

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    4. I don't know...I got a GFE after I locked my rate and there are still additional fees...what NVR calls the government origination charges..... I'm calling them today because the other girl told me it was NVR charges. Blah.

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  5. Another thing to look out for with them. NVR is certainly on my s*%& list. Sorry about your new appliances! That really, really sucks!

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  6. Oh well.. I still will love the house. As long as they can explain the difference I will be ok...but right now it seems a bit fishy. I will definitely update.

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  7. Out of curiosity (and to hopefully ease my panic lol) did you get a final cost analysis when you locked in? About a month ago I told my loan officer that I needed to a pretty solid idea of how much we needed to bring to closing and she said that the GFE isn't a good source to go by because it all depends on your lock in rate. She told me that once we locked in, she could give us a quote that would be almost exact. When we locked in she supplied me with the final cost analysis that listed a breakdown of all the fees and had a line that says "cash required at closing" and a distrubingly large figure next to it lol.
    So were you basing your estimations on your original GFE that you got from your SR or did you get something from the loan officer when you locked in like we did?

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    1. I got a GFE when I locked in my rate and a Truth in Lending Disclosure Statement which had "See GFE" in it for the Recording Fees. I'm paying a little over $500.00 more than what they said.

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  8. Sorry you felt blind sided by this-I would think they better have a good reason for those fees rising, or they need to adjust. If u are looking to save money, do some research into the owner's title insurance and read up on whether u think its necessary, since it is optional.

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  9. When we locked in our rate two weeks ago. I locked in at 3.25% with .375 premium. This basically equated to about $1400.00 coming back to us as a credit at closing. I'm doing a VA loan and the fees are a little different and I believe there are less of them. On the day that we locked in our loan officer emailed me a Cost Analysis Worksheet. This document does not look anything like the GFE that you receive from your SR. However the numbers should be pretty close. Now at the bottom of that document is a line that says "funds required for closing" its more than likely a fairly high number. This number does not reflect any money or deposits that you have already paid to NVR. The way the load officer explained it to me is that you subtract the amount that you have paid already from this number that is listed at "funds required for closing" and the resulting number is what you are required to bring to closing. For Lisa and I its about $300.00 Like I said I'm doing a VA loan there maybe some differences with conventional or FHA.

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    1. There is a huge difference. I'm paying over $3 grand at closing now. I wish it was $300

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    2. Hi Charissa,
      I had an appointment with our SR two weeks as we discussed the change orders. She shocked the hell out of me!! We were so focused on what we needed for the down payment that this through me off completely. This meant mo money, mo money and mo money!! What the!? Anyway, we stopped dead in our tracks because this was putting us way over the amount we planned. We had completed nearly four change orders, spent nearly 4 1/2 hours in her office and stopped!! I had to recalculate our figures over which required another appointment last week. I am grateful we did not find this out later!! However, it did provide us with information that I am glad to have now. Our application fee was $550, our underwriting fee $350 and processing fee is $350 and we are okay with that total because we knew about it. The clause "funds required for closing" is the shocker, when she popped the news on me it was an additional $18K which brings us close to an extra #3 on our total compared to what you have to bring. Jesse $300, Charissa $3000 and Nadase $33K What the!? I have another appt today with our SR and we will be discussing everything in detail, TODAY!! After our meeting two weeks ago, I was given a final total which includes the closing fees; however, I want to be absolutely CLEAR that this is it!! Thanks for brining this UP! After that appointment, I went over our paperwork like a hawk but never bothered to blog about it.

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    3. Let me be more clear....$3000 is what I need to bring to closing. My closing costs are more than that. My settlement charges are just about $11,000 and that does not include an interim tax bill that I will have to pay in a few months of $4500.00 after my house is assessed by the county. My total Cash Outlay is about $15,000 total.I've already given them a little over $12,000 so I knew my closing would be around $3000.00 give or take but I didn't expect it to get near $4000.00 like it is. Remember all of us are building different houses and we all live in different areas. Taxes are a big part of it too.

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    4. I can't wait until my appointment today because I need to be clear! My dilemma is not knowing how much we needed!! We were told we only needed $33k. We have already given them $22K and the rest at settlement about $11K. Well, the shocker was when she told me we still have to pay additional fee of $18K which means $39K instead of the $11k we only thought we needed at settlement.

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    5. It sounds like you are on a very different plan than me. Either that or you are spending a LOT more than I did. Yikes! I would die if we had to do $39K at closing...seriously...a heart attack if I didn't go nuts from banging my head off of a wall first.

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    6. Seriously, I want to throw up just reading those numbers!

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  10. That's annoying if they are changing their processing fees on you... I would definitely have them explain their reasoning. You're right, it's basically like they are taking back a portion of the "lender assistance" they offered you for your rate (pretty clever on their part, but also unethical). We have about $12,000 in closing costs :(. A good portion of ours is taxes. It's depressing.

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    1. Check out my new post. It wasn't the processing fee after all. It was my loan officer not counting days correctly and negating to put in title insurance fees and only calculating for 2 months of county taxes instead of 9. Oh well. It is annoying regardless of what happened. I can see a couple hundred here or there but I can buy a small junky car for the price that is has increased...or an old used scooter....and I've been wanting a scooter with a loud horn so I can act like a crazy scooter woman driving up and down these hills.

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  11. I dug up the HUD1 from the house we just sold in May to compare closing costs. Not new construction so slightly different ballgame, but also Pa. (and Allegheny Co - are you as well?). Total closing costs were around $16,000. Much of that is taxes. The Underwriters fee was $346, but there were also lots of other fees for $1,000 plus like title insurance and origination charge, etc. I think a good rule of thumb is to always take the highest number in the estimate range and go with that (and even add in a few thousand in cushion).

    Another SUPER IMPORTANT thing to remember since you are closing in August/September -- School Taxes. School taxes are usually paid this time of year, and depending on your close date and the date those taxes are due, you may owe a large chunk of change. I know nothing about taxes, but the way our NVR rep explained it to us, was that we wanted to keep enough cash on hand to pay that bill should we close before taxes were paid. Ask your rep for details.

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    1. You are right about the school taxes...that's our interim tax and we expected to pay around $4500 sometime after close. My SR just said that we are paying more upfront now so that figure should be lower. My goodness...I hope so!

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  12. Hi all, my name is Dana and brand new to the blog, in fact, i am LOST finding out how to follow a blog....LOL

    We are building in Orchard Hill and trying to get a heads up on everything, and this blog scares me to death.!!!

    We just had our meeting with Rusmur and was a little overwhelmed and what ISNT included.....We are building and expensive home surprised at the quality of the things that are included in the home....Anyway, we meet the our loan officer on monday and I get worried about "hidden " numbers!!

    HOw do I follow you guys.......LOL

    dlk1613@aol.com

    thanks all, cant wait to blog!!

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    1. Hi Dana, Welcome to our world! :) Don't let this blog scare you too much. My loan officer overlooked one thing and the other thing he couldn't really help. We have to pay interim school taxes after the house is assessed and he thought most of it would have to be paid after closing. So we are just paying more than we thought we would up front and should owe less later now. We still would have had to have it in savings or saved up in a couple months so it's not so bad. I was just a little shocked because I had set in my mind what I was going to spend after closing but I just have to wait a couple weeks now.....really not a biggie when you think about the big house you get for your buck and it's Energy Star...so the savings will continue long after Ryan Homes is out of our lives. And you really can't beat the rates right now. For us, Ryan Homes quality was way above the other builders so it was a no brainer. Perhaps I will change the title to be a little less scary. But..this blog should remind everyone to double check EVERY line of Every form. I somehow overlooked it too and I look over things like a hawk. You can follow the blog by clicking on the tab above on the right just below "Followers" that says "Join this site". Happy Building!

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  13. Find blank and fillable HUD1 forms at PDFfiller.
    http://goo.gl/7PF1bp
    You can fill the text fields, add a variety of checkmarks, digitally sign the form and even add pictures. After your pdf form is completed, it can be printed, emailed, faxed or saved on your computer. You can even send fillable pdf forms to your customers, employees, vendors and partners.

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  14. Wow! So it's been a couple years or more now! Did you know you can make extra money online by blogging? I had no idea until something forced me to find a new way to make money and still pay for my house! http://www.marikinavalley.com Check it out and if you come inside and learn with me, be sure to say hi! I'd love to know how you found me! :)

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  15. I wish there were more current posters. I am building a Ryans Home and I am tired already

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  17. I might be buying soon....well we were all the way through the process but our lot had issues so we were afforded our money back or choose another lot

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  18. I might be buying soon....well we were all the way through the process but our lot had issues so we were afforded our money back or choose another lot

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  19. I might be buying soon....well all the way througb tbe process but our lot had issues so we were afforded our money back or choose another lot.

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  20. Read your blog its really informative and helpful keep updating with newer post on Emi for home loan

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