What are Mortgage Closing Costs and Good Faith Estimates?
If you are first time property buyer, we do have some sad news for you – taking a mortgage loan will cost more than just your down payment. When granting you a property loan, mortgage lenders will happily bill you for a colourful list of one-time fees labelled as your mortgage closing costs. A recent survey conducted by BankRate discovered that the average closing cost in the United States is about $2,750. This figure does not include taxes, government charges or escrow fees. These mortgage closing costs are fees imposed by lenders to arrange and underwrite a property loan for you. It also includes professional appraisal fees to confirm the ownership, value and condition of the property that you are buying. The good news is that there are tried and tested ways for you to save money by cutting down on these closing costs. So what are good faith estimates and how are they important to you as a property buyer? When applying for a mortgage loan, lenders will often give you an item by item
