Good Faith Estimate, now referred to as “Loan estimate” (LE) is an estimate of what the costs of financing your home are expected to be. Some of these closing costs are not controlled by the lender, such as title fees, insurance, escrows, and state taxes. However, items such as origination fees, “points”, broker fees, and other administrative fees are set by the lender and may vary significantly between lenders or brokers.
When you purchase or refinance your home, there are certain costs that will be associated with the closing of the transaction. When buying a home these fees and who is responsible for them are often negotiated between the buyer and seller and should be documented in the purchase agreement.
There are also closing costs associated with the refinancing of a home. The table below will give you an idea of the type of costs you should expect to see when buying or refinancing your home. When shopping for a mortgage it is very important that you understand what these fees are and which ones are controlled by your lender. Sometimes what may appear to be a “great rate” isn’t so good when you take into consideration the fees the lender is charging.
The best way to make sure you get all the details of what the lender is offering you is to request a Loan Estimate.
A “Loan Estimate” is an estimate of what the costs of financing your home are expected to be. Some of these costs are not controlled by the lender, such as title fees, insurance, escrows, and state taxes. However, items such as origination fees, “points”, broker fees, and other administrative fees are set by the lender and may vary significantly between lenders or brokers.
Standard Closing Costs
- Loan origination fee.
- Points (optional).
- Appraisal fee.
- Credit report.
- Underwriting fee.
Prepaid Fees and Escrows
- Interest payment.
- Property tax escrow.
- Insurance escrow.
- Closing costs.
- Title search and exam.
- Attorney’s fees.
- Title insurance.
State fees vary by state but may include items such as documentary stamps, intangible taxes, recording fees, county fees, etc.
If you are building a new home, there are also typically other costs, which can be significant, that are passed on by the builder. These can usually be found in your contract.
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in mortgages for first-time homebuyers, conventional home mortgages, refinance loans, reverse mortgages, and FHA, VA, and USDA mortgage options. In addition, we’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.