Are there any maximum closing costs established regarding first lien real estate loans?
No. However, there are requirements under the Federal Real Estate Settlement Procedures Act (RESPA) (12 USC Section 2601) for minimum disclosures on certain mortgage loans. This includes a Good Faith Estimate of the amount or range for each settlement charge the borrower is likely to incur no later than three (3) business days after the written loan application is received. No fee may be charged for the preparation of the Truth-in-Lending form, Uniform Settlement Statement, or the initial and annual escrow account statements. Note that second lien residential mortgages are heavily restricted.
