Get a Good–Faith Estimate

A good-faith estimate is an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home. The lender will supply this after your loan application has been completed, so you can make accurate judgments when shopping for your loan.

Understanding Your Closing Costs and Escrows

There may be closing costs customary or unique to a certain locality, but closing costs and escrows are usually comprised of some general costs.

General Closing Costs

• Appraisal fees
• Credit Report fees
• Title search/Title Insurance fees
• Loan Origination fees

* Recording fees

• Survey fees
• Loan Discount Points (where applicable)
• Investor fees
• closing/AttorneylEscrow fees

General Escrow Costs

• Home owners insurance (you will need a paid receipt prior to closing)
• Property Taxes
• Interest Due (from the day of closing to the end of the month)
• Mortgage Insurance Premiums

Criteria For Loan Applications

Lenders consider many things in deciding whether to extend a loan. Not all lenders use the same factors. But there are some common guidelines that lenders use when evaluating loan applications:

• Capacity — Lenders will review your employment history to determine if you have the capacity to repay your debt obligations. How long have you been working at your current job? How much do you earn? What is your future earning potential?
• Credit — Lenders will review your credit history, consider how much debt you have incurred, and how you manage your debt responsibilities. How much do you owe? Do you pay your monthly bills on time? Are you consistently late in paying bills?
• Character — Lenders will look at how you pay your bills. They will also take into consideration any history of lawsuits or bankruptcies.
• Collateral — Lenders will evaluate the value of the property, a source of protection for the money they lend. The lenders want a guaranty that they will get back the money they lend. Is the property worth the risk? What are the chances that the property will decrease in value?