Many borrowers walk into the process asking the question of what exactly closing costs cover. This is VERY important to understand. Typically, included in these fees are the following:
- Credit Report
- Underwriting and processing
- IRS verifications
- Attorney fees (including title insurance, title exam, recording fees, etc)
- Flood certificate
- Plot Plan
When determining which program is best suited for you, ask your loan officer for a Good Faith Estimate, which will itemize all fees associated with the closing and provide you with a transparent reference point. You will want to know exactly which fees are being estimated at the time of your application and you want to be aware of any potential costs that you will incur.
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