July 13, 2011 THE VILLADOM TIMES III • Page 15 Area Closing on a home often involves signing a stack of papers, much of which is difficult to understand. It’s no wonder that many people are surprised by some of the mortgage closing costs. In fact, the average origination and third-party fees on a $200,000 mortgage total nearly $4,000, according to a Bankrate survey. With that in mind, the New Jersey Society of Certified Public Accountants recommends taking these steps to ensure that you understand closing costs and are in a position to minimize them wherever possible: Do Your Homework Before you even get to the closing, shop around for a loan so that you are aware of what is available and who has the lowest rates and fees. While cutting closing fees is a great idea, keeping a lid on your total loan costs can save thousands of dollars over time, so be sure to compare offers. Even if you are not an actual customer yet, many banks will offer an estimate of closing costs at this point, so ask for one to get an idea of what your overall loan costs will be. If you have any questions about what is included, it is also great to get your answers in advance so that you understand the process. Get Your GFE Lenders are required to provide borrowers with a good faith estimate of potential settlement costs no more than three days after you apply for a loan. However, the final charges may legally be as much as 10-percent higher than what is shown in a GFE. If you believe the fees in a GFE are too high, don’t be afraid to challenge the lender and make it clear that you might take your business elsewhere if they are unwilling to negotiate. The GFE will also establish the loan amount, term, and interest rate, and spell out any penalties or special loan features. Ask the lender to explain any terms or fees that don’t make sense to you. Get the Final Tally Remember that the GFE is only an estimate. Before the closing date, ask for a list of final settlement costs and com- What you need to know about mortgage closing costs pare them to the original GFE. If there are some notable additions or changes, be sure to question the lender about them. Look for Duplications Among the things to review in your GFE are possible duplications of fees you may have already paid. For example, if you’ve written a check for an appraisal early on in the process make sure you don’t get charged twice for it. Point out the problem to the mortgage lender or broker and have it removed from the total. Check Government Resources The U.S. Department of Housing and Urban Development offers numerous resources for home buyers, including information on borrowers’ rights and on the laws governing mortgage settlement procedures. Figure out What’s Tax Deductible While most mortgage closing costs generally are not deductible, the points that you pay on your mortgage may be. Your CPA can work with you to determine which fees you can deduct. Your CPA Can Help Mortgage closing costs may seem like a confusing subject. If you need assistance, turn to your local CPA for knowledgeable advice on all your family’s financial concerns. If you don’t have a CPA, you can easily locate one online using the NJSCPA’s free, online Find-A-CPA service. Visit findacpa.org. For more information on various personal financial matters, visit the NJSCPA’s public service website at MoneyMattersNJ.com. While visiting, you can subscribe to Your Money Matters, the NJSCPA’s free, monthly e-mail newsletter to receive valuable personal financial planning advice throughout the year. Clean water Project Manager Jeff Gunther testing out the water. (continued from page 11) a mass genocide of the Acholi people in 1987. Kony and his soldiers began abducting young children and forcing them into unimaginable acts of hostility. The carnage ended some 20 years after the war began, but the Acholi people have been putting back the pieces of their broken homes, families, and lives ever since. Through the act of helping one another, partnering with organizations such as Touch the World, and forming lasting relationships, the Acholi people are slowly becoming whole again. Kroeze and the rest of the missionaries in Uganda and the villagers of Adak express their gratitude to all those in NJ who have made this possible. “Thank you to all our supporters who have stood behind this endeavor and our vision to bring spiritual transformation, interdependency and sustainability to our community,” Kroeze said. Touch the World is currently seeking individuals, organizations, and businesses interested in helping raise awareness and establish income-generating projects in Adak to create long-term sustainability for development. For more information, contact JeremyM@touchtheworld.org.