Loan servicing, payments, escrow account

My wife and I are 1 week away from closing on a house. Our original loan estimate stated a monthly payment of {$1400.00}. Well yesterday we received the Closing Disclosure ( CD ) which stated a monthly payment of almost {$200.00} more. The lender informed us the increase is due to the inclusion of city tax which he did not include in the original load estimate and an increase in insurance premiums. My issue is twofold. First, are the lenders not required to do the proper research for the loan estimate to determine what taxes are included? They clearly did n’t and according to their response, ” the actual property taxes are provided with the title search and that the closing attorney gets this information directly from XXXX XXXX and city. ” Secondly, we sent the lender the up-to-date insurance numbers at the beginning of XXXX and only now have we been shown how it changed the rate. We never received a revised loan estimate. Over the phone the lender told my wife that is not something they do. Bottom line, had we known the monthly payments were going to be the CD number, we would have backed out long ago and pursued another house. As it was, it was on the top end of our budget and now its over!

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