Part 3 of 7: Protection Against Loan Adjustments

The Dodd-Frank Act protects buyers from loan adjustment fees.

If you're gearing up to buy a home, what is your loan really going to cost you?

In the past, lenders were required to give buyers a good-faith estimate, but these weren't very accurate. In fact, if you bought a home before the economic crash, you probably noticed that the fees at the closing table looked very different than the ones presented in the good-faith estimate. That's because there were no laws in place that forced lenders to have no tolerance when adjusting the fees later.

But that was before the Dodd-Frank Act was put in place in 2010 and protected consumers from loan adjustment fees. Now when you receive a loan estimate, the lender fees that the lender quotes you to obtain the loan have no tolerance. In other words, they can't adjust.

In fact, if the lender makes an error when quoting you up front, they have to pay for it. In the past, consumers had to pay for everything, but not anymore. When it comes to the fees we're charged to acquire a mortgage, it's very much a "no-tolerance zone."

Shouldn't lenders know upfront what your loan fees will cost? I say yes, and so does the law. I'm grateful this law is in place and buyers are no longer misled by the numbers they're shown at the beginning of the mortgage process.

Now is a great time to be a homebuyer, so if you want to make the leap to homeownership, give me a call so we can design your home purchase.

If you have any other mortgage questions or there's anything else I can help you with, don't hesitate to reach out to me as well. I'd love to help you.