| After your first meeting when you make an application | | | | you can only compare any costs charged by each |
| for a loan with a mortgage lender, there is a document | | | | and every lender. All of the lenders you get quotes |
| that they are required to mail to you within three | | | | from are doing their best to make an informed guess |
| business days. This document is called a "Good Faith | | | | about costs charged by others listed on the Good |
| Estimate" of the closing costs regarding your purchase | | | | Faith Estimate. |
| and loan. It is incorrect to assume that the lender is | | | | There are two very broad categories of the closing |
| responsible for the closing costs since they prepare | | | | costs related to purchasing a new home or refinancing |
| the estimate. The lender is not even required to list all | | | | a home you own. The first category is non-recurring |
| of the costs because it is impossible for a lender to | | | | closing costs. These non-recurring closing costs are |
| know exactly what the costs will be. The Good Faith | | | | items that are paid one time and then they never have |
| Estimate is just a guess based on the lenders past | | | | to be paid again. Then there are the recurring costs |
| experience. You should never assume that this | | | | related to the purchase of a new home or the |
| estimate is accurate because there are things that will | | | | refinancing of a home you own. These recurring costs |
| come up that the lender has no way of knowing | | | | are items that you pay over and over again during the |
| ahead of time. | | | | time you are the owner of the home or property. A |
| If you are going about getting a mortgage loan in the | | | | couple of these recurring costs related to the |
| correct way, you will be comparing lenders to see | | | | purchase of a new home or the refinancing of a home |
| which one will offer you the best interest rate and the | | | | you own are the property taxes on the home or |
| best deal for your financial situation. You must be | | | | property and the homeowner's insurance that insures |
| careful and not think of any estimate received from | | | | your home and your property. If you are a borrower |
| any lender as the actual total cost. When comparing | | | | then you should be aware that the lender is not |
| lenders and trying to get an idea of which one is best | | | | responsible for listing any specific items on the |
| for you and will cost you the least amount of money, | | | | Estimate of Good Faith. |