Alert! How to Tell Early If Your Choice is Being Ignored—
▪ The lender “requires” a particular closing agent. If your lender does not include title charges within disclosed “finance charges,” under federal law the lender is required to defer to the borrower’s choice of settlement agent. It rarely takes more than a single telephone call from your closing attorney to the lender to fix the situation. Please contact us with the name and telephone number of your lender and we are happy to help clarify our role in the closing process.
▪ Your lender says that your closing attorney is not on the "approved" list. When an "approved" list legitimately exists (often they do not), any reputable lender will make sure your choice of attorney is added to that list. Remember, Federal Law trumps and you may use the closing attorney of your choice. Your lender knows the law and also recognizes that most consumers do not know the law.
▪ Your lender claims it is cheaper to "go with their people." Rarely, if ever, does a borrower actually save money by using the lender's choice settlement providers. In fact, most often, costs are higher when using "preferred" providers. See below.
▪ Your lender wants to use a notary service instead of an attorney (and claims attorneys are expensive). Did you know that notary or witness only closings are illegal in Georgia? Moreover, chances are, the closing will not cost more. In these situations, lenders frequently pocket all or part of the closing fees themselves, either directly or indirectly, while not saving the customer a single penny!