A Good Estimate Isn’t That Rare

In his Oct. 17 “Real Estate Q&A;” column, Robert J. Bruss wrote, “I’ve bought and refinanced many properties, but never has the mortgage lender’s good-faith estimate ever been close.”

How sad it is that a person in his position can’t find a competent loan officer to give him an accurate good-faith estimate.

I’ve originated loans for more than 13 years, and it doesn’t take a rocket scientist to figure an accurate good-faith estimate. Just for the record, my definition of accurate is $150 either way of actual.

My best guess is that the majority of mortgage loan officers come this close in their “estimate” and if they are further away than this, then something has changed in the profile of the transaction that was not divulged to the loan officer at the time the estimate was completed.

Also, the loan officer has no control over what escrow and title charge. These two charges alone, along with their additional fees (sub-escrow fees, etc.), are the two highest closing cost items on a good-faith estimate (assuming a no-point loan).

Realtors or the principals usually select these companies, and those costs do vary with each escrow and title company. With refinances, the loan officer usually can direct title and escrow if the homeowner hasn’t a preferred choice. In this scenario, the loan officer should be very close to exact charges.

RON MEYERS

President

Oakcrest Financial

Mission Viejo