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When you talk to a lender,
they usually prepare a "Good Faith Estimate" of
closing costs. Sometimes they will give it to you right
away, but they are only required to mail it to you within
three business days of application.
Because the lender is the one who prepares the estimate,
many buyers associate all the closing costs with the lender. This
is not correct. The lender is only preparing an estimate
of the costs you may incur when buying or refinancing and
is not required to list all potential costs. Nor does
the lender know what all the costs are actually going to
be. The estimate is an educated guess based on past
experience. Some things will get left out. Always
anticipate the actual costs are going to be more than the
estimate.
When comparing two lenders, don't look at the "total" cost. Only
compare the costs actually charged by each lender. Both
lenders are only making informed guesses about costs charged
by others.
The next page is a detailed summary of costs you may have
to pay when you buy or refinance your home. The costs are
listed in the order that they should appear on a Good Faith
Estimate you obtain from a mortgage lender.
There are two broad categories of closing costs. Non-recurring
closing costs are items that are paid once and you never
pay again. Recurring closing costs are items you pay time
and again over the course of home ownership, such as property
taxes and homeowner’s insurance.
Some of the items that appear here do not traditionally
appear on a lender's Good Faith Estimate and lenders are
not required to show all of these items.
 Lender
Non-recurring Closing Costs
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copyright 2000 by Terry Light and
RealEstate ABC
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