When you buy your home you may hear your realtor and your mortgage lender both refer to closing costs, and you may be wondering exactly what these costs are and what they have to do with home loans. It is important to learn about closing costs ahead of time so you are not shocked when you are expected to come to the “closing” of the loan with funds in hand. Luckily, lenders will give you a Good Faith Estimate with the closing costs ahead of time so you will know about what they will be.
Understanding Your Closing Costs
When you obtain home loans, there are certain fees that are associated with them and all that goes into borrowing money from another source. There are many costs associated with your loan that you may not even be aware of, until you get the bill, that is. When you get the bill you may be surprised at some of the costs associated with things, but try to take it all in stride and remember that these are one time fees.