Residential Mortgage Application: Closing Costs

When you fill out a residential mortgage application with a lender, one of the most important parts of the process is going to be the closing costs. Here are a few things to consider about the closing costs on your mortgage.

Closing Costs

Closing costs can include many different things, such as the appraisal fees, title insurance, origination fees and discount points. Every lender is going to have different types of closing costs, and they will charge different amounts for them. In most cases, you are going to have to pay somewhere between $4000 and $6000 for typical closing costs.

Good-Faith Estimate

Within three days of applying for a mortgage, the lender is required by law to give you a good-faith estimate. This good-faith estimate is going to include all of the different closing costs that you are going to have to pay. 

Shop Around

When you are looking for a mortgage, it is going to be in your best interest to shop around with multiple lenders. This way, you can use the good-faith estimate from each lender to negotiate with the others. 

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