The Jon Sanchez Show

11/19-How to read a mortgage settlement statement

One of the key documents you receive when obtaining a mortgage is a settlement statement. This document provides a detailed breakdown of the costs associated with closing the real estate transaction. But what are the key components you should pay attention to? How do you know exactly what your costs are? We’ll explain

Duration:: 34m
Broadcast on:: 20 Nov 2024
Audio Format:: other

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Thank you. Absolutely. Dwight Mallard, centered you in lending. How are you, my friend? I'm doing fantastic. Coria's not cranking those cranks asking up on the phone, so... I'm trying to get the cancer to run faster on the wheel. That and that solar power that he has managed, you know, powering that beautiful house is, it's, you know, it's coming together. You know, when the electronics of the world shut down, Coria's just going to be just fine. He won't even know anything happened. He's just going to play with his cows and attend to his garden. That's all the man needs to be happy in life. That's why I kept my marble collection because, you know, me too. I did too. Yeah. Yeah. Marble collection from first grade Pleasant Valley Elementary School. They're still in the red velvet bag that my dad gave me. You know, when he gave me those marbles and the steely heads and the cat eyes and, yeah, remember all those? Oh, yeah. Still got him. Oh, man. I don't know if he can even. I forgot you went there. I forgot you were a Pleasant Valley alum, like my kids. Yeah. First, yeah. First through third grade, baby. First through third grade. They didn't tend to like it so much. Probably much hasn't changed. Yeah. No, it really hasn't. It's still the same dirt playground that I was going to say. They weren't too sad to see me go. I got written up quite a bit for fighting. I used to like to fight at that very young age and I was born by Mrs. Keaton. Look in that crazy. I can't even remember what I have for dinner. I can remember my first grade teacher's name. Mrs. Keaton. Yeah. She wrote me up for fist cuffing. That's what they called fighting fist cuffing. John has a problem with excess fist cuffing. That's probably the last fight I ever got into. It was like a first second grade. Oh, good. Crazy times. Crazy times. Well, it was definitely crazy on the street today, guys. And we got a lot of things we're going to be chatting about. We'll recap again this session that we awoke to with President Putin lowering the Russia's threshold for nuclear weapons that he was all upset that Ukraine had launched a U.S. made missile into Russia, missile into Russia, and that the Russian Foreign Minister had called the attack on Russia and escalation signals. So yeah, I did a double take this morning when my alarm went off at about 3 o'clock and I looked at it and I'm like, "Futures are down 220, 230 points. What in the world just happened?" You know, we went to bed and everything was just fine. And that's what it transpired overnight. So those geopolitical developments, of course, impacting the market. But we closed well off of our lows today and, you know, just kind of looked like a normal little pullback of a session. So I'll give you details on that. Let me tell you what we have lined up for our main topic this afternoon. You know, one of the key documents that you receive when you obtain a mortgage is a settlement statement. Now, for those of you that haven't done real estate in a while, remember this document? It's that document that provides a detailed breakdown of the costs that are associated with closing the real estate. Things like all of the mortgage fees, real estate fees, commissions, it's all laid out in this one document. But what we want to accomplish this afternoon with you, for those of you that may be getting into some real estate, come springtime, or maybe before Christmas time, who knows, is really highlighting some of the important things that you need to be paying attention to on that closing document. And again, there's things, again, associated with Cory's side of it, the buy-in-sell side, and obviously on Dwight's side is the lending side of things. So how do you know exactly what your costs are? What do you need to be looking at in this big document? Now, Dwight, real quickly before I get to the stock market side of things, this document, and Cory, you chime in here too, this document has changed dramatically over the years, and it really lays out a lot more detail that I hear from my clients, and many of them are like, "My God, there's so much information on this thing. I don't know what I should be looking at, or should I pull out my calculator on my phone and double-check all the math numbers when I get this document?" There's a lot of information there. John, I mean, the government got involved. Remember, we called it TRID in October of 2015, where they integrated some things, and you've got to be a spy to figure it out. I've been doing this 40 years, and I can't hardly read them to expect, but any time the government tries to create something, it just doesn't work out, but they're hell bent on keeping this around, and there's some good positives to it now, but it took us a while to get used to it. But out of that came the CFPB, and they're fun tactics, but there are several, which will go through several key points and documentations you'll receive. And to your point, ultimately at the end, you will get a settlement statement from the title company, which basically summarized everything you just experienced. That's right. Yeah, and so it'll end, but to know beforehand it's going to be important, correct? Let me ask you, let me ask both of you this question. Corey, I'll start with you real quick. At what point, Corey, as the real estate broker, do you get involved with explaining that settlement statement? Because, forgive my ignorance here, it's been a while since I've bought real estate, but aren't you given something in the very beginning of the transaction? Isn't that one of the new rules, and then of course you get one at the end? Oh, we don't. On Dwight's end, they have a lot more disclosures on the upfront. And then towards the end of the deal, we'll get the closing statement. So I'll get a copy and then the seller, the buyer, whoever we're representing gets a copy. And that one's easy, easier to go through. Everybody just looks right to the bottom line because they already have an expectation of what they're anticipating. So they left it the bottom line to see if it matches or not. Okay, but what's the document they get up front? So, John, that's the loan estimate. We used to call it a good faith estimate. There you go. We call it a good faith estimate. We all are familiar with that. It's easier to read. So it's a loan estimate that we... And what Triad did, John, is to transfer the disclosure of the fees, the entire transaction from the title company over to the lender. That's what Triad did. So we are the ones tracking down all the costs and we've got to put it on the LE. And we'll get into it. There's only some small variances to that or you're going to get what we call costicures. And so it really shifted it away. And I don't understand that particular decision where it transferred it from the title company, who's that third party equal to the lender and disclosing it. So we've shifted away from what people were used to, again, the 2015. So it's 10 years ago, you know, that what they were used to. So if you haven't bought a home in 10 years, you're going to be really surprised at what you're going to see. And you're going to see it 10,000 times. Yep. And most importantly, you guys are going to highlight again some of the... Because it's a massive document, folks. But what Corey and Dwight are going to do, most importantly this evening or this afternoon, is to highlight things that you as the buyer or the seller need to be looking at. Because guys, you know, better than I do, but real estate transactions I've been involved in, I have caught mistakes that escrow has made. And if you don't know what you're looking at on that document, it can cost you a lot of money or like you were mentioning a moment ago. Dwight, it can be some surprises, right? Well, the way that it goes now, we'll get into it. There is no more of the element of surprise where a borrower can lock into title in the old 4,000 more than... I mean, then something just isn't right if all of a sudden you owe 4,000 more. You didn't look at a document or something, but so the element of surprise is gone. But all of that compliance and all that stuff, John, the cost of all this just transferred over to, you know, the borrower through higher rates and, you know, that's just kind of the end result of all this. But that's going to be the provision that works. You know, we used to talk about those people and walk in. Why were my closing costs 5,000 more than I was told? And yeah, the progress of now from L.E. to CD, they're just isn't that anymore. You just can't have that surprise, which is, again, that's a positive that came out of it. But it's a lot more complicated, John, than it probably should be, but it is what it is. You got it. All right, guys, let's get down to the stock market side. And we, of course, will come back and spend a lot of time on this topic. But let's get to the stock market side. So I told you what caused the concern early this morning. In fact, I'm looking at my notes. And right before the stock market opened, we were down 394 points on the Dow futures. It looked like it was going to be a tough open. It was. We dropped nearly 500. I think we actually crested 500 at the worst level of the Dow. And luckily, like I said, slowly but surely this market found its way higher. Interest rates being down today was one of the positives that, I mean, I can't imagine Dwight if today would have been a day where we would have saw the bond market yields going up. But, of course, when investors get nervous about, you know, there's many reasons people buy or sell bonds. But I can tell you one that's, you know, almost as guaranteed as can be, that when there's geopolitical tensions to the extent where you're talking nuclear war, people will still both in the U.S. as well as internationally still flock to the safe haven of the U.S. bond market. So luckily we saw that money come into the bond market that did drive the yields down a bit. Dwight, we finished down four basis points on the 10 year, 436 is our close. How do we do on the mortgage side of things? Yes. So the mortgage back security is actually finished up in a slightly positive range. But the 30 year, you know, average 30 year fixed went down four basis points. So we were sitting at 708 yesterday. We're 704 today. So to your point, we got a little bit of relief. Probably just based like you said off the news. And we didn't get a whole lot, but it was enough to just avoid, like you said, catastrophe. So we avoided that and got a little bit of break from it. Okay, perfect, perfect. All right, Corey, I want to, when we come back, I want to get into a little political discussion with you. This was something I kind of went on my soapbox with Jason yesterday on the show about. And that was, again, Elon Musk having a whole bunch of power and not even being an elected official. But it hit me again today that we are seeing a number of Trump's very close friends. Big, big donors, regardless of their experience in the world of politics, which sometimes a good thing, right? Bring somebody fresh in. But more importantly, some of the appointments that he is making right now from Wall Street to Washington, D.C. Is he doing the right thing for the country or is he just giving a buddy a job that gave him a whole bunch of donations? I want to get your opinion on this, Corey, because you're involved in this situation a lot also. And I know you've got some strong opinions on it. So we'll talk about that when we come back and tell you how this market did today. But first, let's turn it over to Kristin Snow. She is in the right now, traffic center. Hey, Kristin. Welcome back to the John Sanchez Show on his talk, 780 k.o.h. with Corey edge of agility, Dwight Millard of center G1 lending. All right, as we said, the day got started with global tensions. We came way off the lows to finish with a decline of 121 on the Dow, 0.28%, 243,268. Nasdaq kind of brushed it all aside, though. It was strong throughout the day and kind of continued to move higher with a nice gain of 196 points, 1.04%, with a close of 18, 987, and the S&P up 23 points are 0.40%, finishing at 5,916. Barely budged on oil just up a tenth at 69.25, a barrel. Golden will safe haven play like the bonds up $16.40 to a one week high at $2,631 per ounce. And as we mentioned, a four basis point decline on the tenure at 4.3%. Now, Corey, before I come back to you with your questions, I just want to go just a little bit deeper for those that were hard at work today and didn't get a chance to really hear or understand what caused the situation early this morning. Like I said, when we fell almost 500 points. So it all comes down to Putin. Putin amended the country's nuclear doctrine. And what this is, this outlines the conditions that would prompt Moscow to deploy its nuclear arsenal. So again, very, very serious piece of paper or paper or something. Now, Moscow had signaled an interest in updating this doctrine months ago. No one really paid much of attention to it. But the latest amendments got everybody's attention today. The latest intentions, of course, implemented within days of our decision as far as the U.S. to allow Kiev in Ukraine, of course, to use American made long range missiles against targets in Russia. Now, today, the Russian defense ministry said, "Guys, there's something going on in your phones there." The Russian defense ministry today said that Kiev had already deployed six U.S. made long range ballistic missiles in an overnight strike in the Briansk region in the west of the country, meaning the west of Russia. That's according to NBC News. Now, this updated nuclear doctrine outlines the conditions that would prompt Moscow to deploy its nuclear arsenal and critically expand the circumstances under which it would consider nuclear retaliation. Some pretty big words here, right? There's a lot going on. Here's what the spokesperson of Russia said. He said, "The updated code now states that the Russian Federation reserves the right to use nuclear weapons in the event of aggression with the use of conventional weapons," (i.e., like the ones we threw at Ukraine through Adam) "against it or the Republic of Belarus, which creates a critical threat to the sovereignty or territorial integrity. Aggression against the Russian Federation by any non-nuclear state," (i.e. Ukraine, of course) "with the participation or support of a nuclear state," (i.e. U.S. is considered a joint attack). So pretty harsh words going on there rattled the world, like I said, but typically the markets will have a knee-jerk reaction as they do to geopolitical tensions like this, and then calmer heads will prevail, right? Nothing happened. Who knows if it's just a threat or, I mean legitimately, they changed the doctrine. That's been verified, but obviously a very serious situation. Okay, so that's what caused the situation in the markets today. Now Corey, let's go back over to you to the question I threw at you. As I said, I'm starting to get a little concerned when we're seeing a lot of, you know, future President Trump's buddies taking over some very, very critical positions. Dr. Oz, now in charge of Medicare. Howard Lutnik, the cancer-fist Gerald C.E.O., now is going to be the Commerce Secretary, announced as of today. Huge donor to Trump. Does this sit well with you guys at all? Corey, I'll start with you. That we're seeing all these CEOs that really have no political experience or really experience in the positions that they are being nominated for. They may be great businessmen and great businesswomen, but really no real experience for what they're doing. Am I wrong on this? Do you guys have a different opinion or do you feel the same way I do? I don't think you're wrong. I see this, I mean, on election night, it was such a wave of red and they talk about how there is this, this coil from the voters to change everything. And so to me, this is going to be a very large experiment that can either go incredible because you can't keep the status quo and everybody's sick of the way Washington works. So maybe this things up or it could go horribly wrong and we're not going to know for a couple of years or maybe less than that to see how it goes. I hope it goes right, but I do share some of your trepidation on it. Okay. Do I? No, I agree with both of you. I think that Trump's operating off the fact that he has two years, right? I mean, he could lose control in two years. So I do believe, like Corey said, I think he got a mandate and he's surrounding himself with people that aren't going to buck the mandate that, you know, and Corey's right. I mean, it's either going to vote very well and the voters are going to see the benefit of that or it's not. I don't think there's an in between here. I think it's going to go really well or it's going to go really horrible. Yeah. I think both of you have excellent points on that advice and I'm just concerned again that, well, let me rephrase it. I'm not concerned. I'm curious. I think is a better word. What's going to happen with things, right? You've got some major heavy hitters like like Ludnik, for example. I mean, this guy is a hero, right? For those of you not familiar with him. He is the CEO, has been for many years of cancer, Fitzgerald, one of the large Wall Street firms, lost almost all of his employees in the 9/11 tack on the World Trade Center rebuilt the firm. He's highly respected. And again, all of you read the nominations. There's a list mile long. It's going to be, I mean, a very, very pro Wall Street, which I love, very pro Wall Street, Trump cabinets. I don't care what the position is, it seems to have some type of connection back to either you donated a bunch of money or, or you're from Wall Street. That seems to be the first criteria. But again, you know, can these gentlemen and these women handle these positions without any former political experience? Now, again, I know many of you are saying like, hell yeah, they can, right? This is what we need. Like Corey just said, this is a fresh start. This is the new beginning. We've got different blood in there now. And I hope that we are absolutely correct on this. But again, it's just something that's making me a little bit nervous as I start to see these Trump cabinet picks come in day in and day out. So, all right, you guys, I appreciate your opinion on that. I just want to see if I'm a lone soldier on this or if you guys are part of the army. So it sounds like we're all on the same page. All right, when we come back, one of the most important documents that you will receive when you decide to get into a real estate transaction. Is the closing statement, a settlement statement, however you want to phrase it. Bottom line, it's that piece of paper that shows you where all the expenses are, all the important aspects of the real estate transaction. What do you need to be looking at when this document is presented to you? The boys will have a great outline for you when we return. Let's turn it over to Greg Neff. He's got news traffic and weather. Hey, Greg. Welcome back to the John Sanchez Showing News Talk, 7-8-K-O-H to Corey Edge and Dwight Mallard. Hey, Greg, jump on the microphone real quick because I know what's going through many of our listeners minds right now. They think probably you and I staged that new story you ran about. But I just said, please tell them that was a complete coincidence because I'm listening to that like, oh my God, they're going to think I prompted that with that. Exactly. There you go. There you go. Yes, no, we did not plan that. I guess I'm not alone, guys, when I'm thinking about it. Sounds like many others are thinking that also. If NBC News runs a story on that, thanks, Greg. Appreciate it. All right. Once again, we finished down 121 on the Dow and as like a rose 196, S&P higher by 23. It was just one quick thing, guys. I want to mention, I'm sure many of you saw this. But if not, I want to bring this real quickly as we're talking about the future Trump administration and the Department of Government Efficiency, better known as Doge. Boy, they were already striking here. We saw a bad, bad day today for Intuit and H&R Block. I want to squeeze this in real quickly. H&R Block, by the way, had its worst day going back to 2020. Here's what happened. The Department of Government Efficiency again, Doge, said they are conducting highly preliminary discussions about creating a free tax filing app, according to the Washington Post. That, of course, would be viewed as a competitor to the likes of H&R Block and Intuit. H&R Block down $4.12, 6.83% loss to $56.23 and Intuit losing $34.20, 5.04% loss to $6.44.60. That includes a little bit of after hours activity. But, guys, I think this is going to be the story going forward as time goes on as we get into the administration and new policies and things come around. These are the type of things that we, again, Jason and I started, and as well as the three of us at the beginning of this year, saying this is going to be a volatile year. And now we can say this is going to be a volatile new administration because so many things are going to be changing back to our point. And areas that you think, you know, like who would have ever thought that H&R Block and Intuit would be affected by the Trump administration, right? But here's a prime idea. You bring in this Doge group, which is, of course, headed by Elon Musk. And they're going to, you know, again, supposedly what did he say, Corey? Elon Musk, what did he say? He's going to, he plans on eliminating, what was it, two or four trillion dollars worth of government waste in his opinion? It was a staggering number. Yeah, two trillion. And there's probably a lot more than that. So, just for him. Yeah. Yeah, exactly. But these are the kind of things you got to be careful about, especially if you're an individual stock owner because you just never know what can happen. You know, this all, you know, a lot of this occurred in pre-market session, of course. Real quick, they also got some breaking news during the break. Comcast announced that they're going to spin off their cable networks. That would include, I assume, the likes of CNBC. The story is just breaking on CNBC. Comcast moving up in the after hours now up 1.16 percent or 50 cents to 43.15. All right. Here we go. Let's get down to this important mortgage document called the closing statement. Dwight, let's do the real basics here and then I want to get into some of the very, very important facts for our listeners to make sure they understand this when an escrow does come around and the beginning of the transaction, et cetera. So quickly explain just the basics of what the settlement agreement is. Well, so the settlement agreement will give you a complete detail accounting of everything, including commissions and everything that was, it's a complete summary of the transaction. So it takes all the lenders, costs, fees, et cetera, all the real estate, and it puts it all into one form that is, like Corey said, is easy to read. So it's kind of back to old school on that one, which is helpful for some people. But that is the settlement statement that is issued by the title company. Okay. But again, issued at the very end of the transaction, i.e. closing or what is issued at the beginning? Well, they get a final one, but Corey will get one early in the transaction. So that comes separate from us. And we start reconciling our fees. We initially send out, John, so I still do it old school. I do like a little worksheet, scratch, you know, pad type thing, talk to the consumer and they say, okay, I'm ready to move forward. Once they do an application, I have three days to put out an LE, which is now the new loan estimate, which we used to know as a good faith estimate. And it's fairly simple to read. I mean, they've got blocked items, loan term, projected payments, total closing costs, and it itemizes it, but it's a lot of information. So it's more information that the consumer used to get prior to 2015. So it's a lot of information on that loan estimate, but that's the initial thing that goes out to the consumer that they get a look at and say, okay, this kind of jives with what I was told. Okay, very good. Now, Corey, let's come back to you. What does the real estate professional provide in similarity to what Dwight is describing with a loan estimate? So everybody does it different, right? If you have buyers, then you're going to get a lot of the fees, costs, all that stuff from the lender, because they're going to be the majority of those buyer fees. And then you're going to have title costs. You're going to have some prorated costs, insurance, the set and the other. And so what we can do is put together to the best of our ability with the help of the title company. Here's what we think you're approximately looking at Mr. buyer, Mr. and Mrs. buyer. On the seller side, you do the same thing. You don't have the loan fees to worry about. But you still have closing costs transfer tax again. Garbage fees. I mean, those are some of the discussions you have with them. Yeah, all those things. And so, just real quick, what I came to do, whether it's right, whether it's wrong, is a lot of times if you go through a hundred of these. You end up equaling a certain percentage of the deal, you know, within a range. So I would tell people, I would factor in maybe an extra 1%, maybe an extra 3/4% of your seller to throw on his closing costs. We don't know the exact number yet, but I'd rather you err on the high side and be pleasantly surprised than walking and not understand what just happened. Okay. Okay. Very good. Corey, while we're discussing this with you, what do you highlight? What are the biggest items that you're going to, you know, again, you've got a lot of figures on this piece of paper. What do you really emphasize into your clients that they need to be aware of? So again, in the beginning, let's say that you're my client, you're a seller. We just put a deal, you know, in escrow for 500,000. Well, in your brain, if you don't have a loan, you're thinking, okay, I'm going to get 500,000. The first thing we've got to do, take off the commissions. If you have one or two commissions. And then this is where we're going to have the discussion to say, Hey, John, listen, they're going to pay X amount of commission. We're going to add another 1% to that. It's not a cost, but I want to give you a good idea because we're not going to see those final, final, final numbers till closer to the end. So factor in that 1% three quarters, whatever people want to use. And it's usually right there in the ballpark. So you get an idea of what that number is when it does finally come in, John, then we're going to look at. Is there seller credits in there? Are they supposed to be in there? Some of the stuff, the one that usually catches people off guard and say, I paid my tax bill, why am I getting charged? Well, maybe the record's not updated. So we need to call the, the treasurer's office, or maybe you didn't pay your tax bill. You thought you knew or just kind of little pro rations like that. John, but I want to add. John, if I could add this. Let me just ask Corey one quick thing. And what is that document called, Corey? Are you referring to? What do they call them now? Do I have the settlement statement, the closing statement? I mean, they have an official name. Yeah, they still call it the settlement statement. That's what they say. So both refer to the document as a settlement statement. Yeah. Well, yes, from the title company, from the title company. Well, you got to remember, it's from the title company only generates a settlement statement. We do all the other work, the L E and CD. We do the loan estimate in the CD. What's L E and CD loan estimate, loan estimate, and the closing disclosure. But John, I'm telling you, if you go back to old school and you go back to the original when we, when we did good faith estimates and loan estimates from, they worked. The problem is now because of trade. And when I send out an L E, I'm basically locking down the fees. That's why there's no more surprises. And anything I lock down, there's only a little bit of tolerance on a few little items outside of that. John, if I don't collect enough on an appraisal, it's a cost to cure to the lender. So this is what it did help the consumer not necessarily understanding, but not having any more surprises. They just cannot have those surprises anymore. So when I tell you your cost to close is 16,000. I'm pretty damn close now. I'm all the way through. Okay, so before we go to break, I just want to clarify one point because you guys are talking a lot of industry jargon that most of us don't understand. There's only one document and that's going to be the settlement dot settlement agreement or settlement statement, right? And the buyer seller is going to get that at the onset of the real estate transaction. Then simultaneously Dwight, and that's going to come from escrow, then simultaneously Dwight, you're going to give them a loan estimate. And then when they're all done, they're going to get a closing document. Those are our three. No, well, no. So, John, we get feet. We issued the L E represents all the title fees too. We do it now. So we go to the title company and say, Hey, what do we have in this? And we send out an L E with everything on it. So that closing disclosure statement you're referring to no longer is the upfront form. It's the L E. It's what we that's why I said they shifted all of this from the title company to the lender because we had extra time. I guess. I don't know why that happened. How do you know the commission and all that stuff in that? I mean, that's what escrow usually does in property. Well, that that's transferred over. I'm looking at CDs and L E's right now. We don't have that. That's on closing disclosure that Corey gets near the end. I know, right? Everybody's wondering more. We're late. Okay. We're going to come back and we're going to explain this one more time because if I'm confused, probably everybody's confused. So there's a lot of a lot of initials that's used, not use initials and tell me what we get up front and what we get on the back end because I want people to really have a good understanding because there's a lot of new things here, guys. So let's let's let's regroup as we come back. Let's wrap it up with Kristin Snow the right now traffic center. Welcome back to the John Sanchez Show on News Talk 780 KOH. All right, boys, before we regroup. Dwight phone number, please. 240-2022. Mr. Edge. 673-6700. Perfect. Okay. One more time. Let's go through these documents and then which one do you want to take a stab at it here to make it simple? John, it falls on us. So let me tell you, I mean, the title company takes our lead. So when you get the CD, the closing disclosure at the end, that's what everybody asks about because you can't sign it. You can't close till three days after the CD is issued. It has the commissions. It has everything on there. We are actually doing the title company's work. We have been since 2015. So they're giving their their loan estimate is a tool and a helpful tool to the agents to kind of get their arms wrapped around net proceeds, things like that. But everything is driven by us everything from the LE three days after application to the CD three days before you can close. And they just all they do is they mirror one another. But the CD is the final documentation, the closing disclosure that gets sent to title with the help of going through the fees they balance. So the lender and the title company balance off the CD, not a loan estimate, the CD. And then the CD is signed, but from those from the L E and the CD, John, the title company can generate a tool, which is the loan estimate to help the consumer and the agents to know, but we drive the ship now and I don't like to. What are the main points very quickly that our listeners need to know of and pay attention to where mistakes are made, et cetera, to protect their interest. Yes. So on the on the LE, they focus on total cost and clarification. They want to see the disclosed rate points of any and the question and they do question the impound because it's broken down pretty extensive. So it'll also show on page two, it'll show the breakdown of all the costs associated on the CD. The CD is just a recap. If there's anything missing. But generally that picks up like the commissions and and sewer fees and different little things that Corey was talking about come on the CD. That's the final disclosure that they get to see. But it's usually within that tolerance. It has to be now. Okay, okay. Corey, wrap us up. Any final words of advice? Yeah. Well, just make sure you're working with somebody that understands what they're doing like to why because then you can sit down and you can look at it. And he is right. There are much fewer surprises than in the old days where you would show up at the very end and be shocked. So the system isn't all bad. It's working correctly, but it is a lot more work for them. Yeah. Well, it sounds like it. All right, boys. Thanks so much. We'll do it again tomorrow on the John Sanchez show. God bless. Have a great evening. This program was sponsored by Sanchez wealth management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. 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