Understanding Closing Costs ….

Closing costs can be costly so it’s important to understand them.  Lenders are required by RESPA (Real Estate Settlement Procedures Act) to disclose information to their borrowers throughout the mortgage process; information such as closing costs, lender servicing, escrow account procedures, and more.

RESPA requires a lender to give you a good faith estimate stating all the fees to be paid at or before closing.  These fees can include recording fees, title charges, loan origination fee, escrow items, and mortgage interest, to name a few.

Another thing to be aware of is that anytime real estate is sold, certain records that are a part of the closing process, (which generally takes 3 to 8 weeks) are entered into public record.  You should receive a copy of the public record at closing and can request additional copies, usually for a fee.

For more information on RESPA, visit the U.S. Department of Housing and Urban Development website.

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