How do you deal with closing disclosure errors that involve third-party fees or services?

Pay attention to deadlines: Make sure you receive your Loan Estimate and Closing Disclosure in a timely manner, and review them carefully before your closing date. If you have any questions or concerns, contact your lender right away. Keep an eye out for errors: Mistakes can happen, so make sure you review your Loan Estimate and Closing Disclosure for any errors or discrepancies. If you find an error, contact your lender to have it corrected as soon as possible. Understanding your Loan Estimate and Closing Disclosure is essential for budgeting and planning your mortgage and closing costs. Make sure you review these documents carefully, compare the costs, and ask your lender if you have any questions or concerns.

The closing disclosure is a document that summarizes the final terms and costs of the loan and the sale. You should receive it at least three business days before the closing date. You should review it carefully and compare it with the loan estimate and the sales contract. Look for any discrepancies or inaccuracies in the fees and services charged by the lender, the title company, or other third-party providers. These may include appraisal fees, title insurance premiums, recording fees, survey fees, or pest inspection fees.

If you find any errors or changes in the closing disclosure that involve third-party fees or services, you should contact the lender or the title company as soon as possible. Depending on the nature and the source of the error, they may be able to correct it or explain it to you. For example, some third-party fees may vary based on the actual services performed or the market conditions. Some errors may be due to clerical mistakes or miscommunication. Some changes may be legitimate and allowable under the law or the contract.

If you are not satisfied with the lender's or the title company's response, you may have the option to negotiate or dispute the error. For example, you may ask the lender to waive or reduce some of the fees or to match the loan estimate. You may also ask the title company to lower or refund some of the charges or to provide a more detailed breakdown of the services. You may also seek legal advice or file a complaint with the appropriate regulatory agency if you believe that the error is unfair, deceptive, or fraudulent.

Depending on the outcome of your negotiation or dispute, you may have to decide whether to proceed or cancel the transaction. If the error is minor or resolved, you may choose to go ahead with the closing as planned or with a revised closing disclosure. However, if the error is significant or unresolved, you may have the right to cancel the transaction without penalty. You should consult with your real estate agent and your attorney before making this decision, as it may have legal and financial consequences.

To avoid future closing disclosure errors that involve third-party fees or services, you should do your homework and shop around for the best deal. You should also communicate clearly and frequently with your lender, your title company, and your real estate agent throughout the process. You should also keep copies of all the documents and records related to the transaction. Finally, you should review the closing disclosure as soon as you receive it and report any errors immediately.