Pre-paids and Reserves? What are these and what is the difference?

If you’ve ever purchased or refinanced a home then it would be safe to assume that you may have been surprised….ok, SHOCKED, at the total amount of ‘closing costs’.  I bookended the term ‘closing costs’ with quotes because this term is both misused (by mortgage companies) and misinterpreted (by would-be homebuyers and refinancers as well […]

Read More Pre-paids and Reserves? What are these and what is the difference?

There’s “closing costs” and then there’s the “cost to close”

Why is the ‘cash-to-close’ different from closing costs?? Ever been a victim of sticker-shock?  Far too often I hear stories of unassuming folks getting to the closing table only to find that they need MORE money than they thought….like thousands of dollars more than they thought.  How does this happen?? Some lenders aren’t lying; they’re […]

Read More There’s “closing costs” and then there’s the “cost to close”