Asked by Angela Tucker, Maywood, IL Thu Mar 18, 2010

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Bradley Egge…, Mortgage Broker Or Lender, Oakbrook Terrace, IL
Mon Mar 22, 2010

Closing costs do vary from lender to lender. The fees can differ depending on the whether the loan is a refinance or purchase, as well as the type of property being purchased or refinanced. Let me explain. Technically, closing costs can consist of the following itemized fees: loan origination, processing, underwriting, discount points, credit report, courier, appraisal, flood certification, settlement/closing, title insurance, title endorsements and updates, government recording, city transfer stamps, and condo questionnaire (condos only). Most municipalities, Maywood included, do not have any city transfer stamps that the buyer is responsible for paying.

There are also reserves and prepaid costs due at closing. These include prepaid daily interest (interest that will accrue from closing date through the end of that month), first year payment of hazard insurance (unless purchasing a condo), and setting up reserves in your escrow account for hazard insurance and property taxes-most lenders collect 3 months of hazard insurance premiums and 2 months of property taxes at closing.

If you are looking to get a feel for how much all of these will be from a Good Faith Estimate (GFE), it will be difficult. The new GFE includes all fees including fees typically paid for by the seller. The APR is also not on the GFE. (The CEO of my company has a great article on the new GFE on his blog: http://www.richardhartian.com )

At application, your lender ought to provide you with a separate itemization of the fees that you as the borrower will be responsible for paying at closing. The truth in lending disclosure will provide you an APR and page 3 of the loan application will give you a reliable estimate of the amount you will need at closing (including down payment).

I hope this helps, Angela. Feel free to call me if you need to get pre-approved or want more information on obtaining a home loan. Also keep in mind that lenders cannot collect anything more than a reasonable credit report fee from you prior to or at loan application.

Bradley Eggers
Senior Loan Originator
Ardain Mortgage
847-744-0168 (cell)
847-963-1000 (office)
Web Reference:  http://www.bradleyeggers.com
0 votes
Wayne Beals, Agent, Chicago, IL
Thu Mar 18, 2010
Hey Angela,

Good to see a fellow Maywoodian on Trulia.

Your closing cost include the following items:

Pre-paid mortgage interest (points), prepaid hazard insurance, mortgage insurance. appraisal fees, lender application fees, transfer taxes for cook county, transfer taxes for the municipality, attorney fees, credit reporting fees, title recording fees, title company fees, etc. The list can go on.

When you chose a lender, they will give you a good faith estimate when you complete your mortgage application. This estimate will include a very close approximation of the closing cost you'll have. Pay particular attention to the APR (annual percentage rate) as this is the best way to compare one lenders loan fees to another.

Furthermore, all real estate transactions are handled on a HUD 1 form and subject to RESPA, or the Real Estate Settlement Procedures Act. All fees and charges are disclosed on this form to make sure you know who's getting what.

Best of Luck

Wayne Beals
Keller Williams
0 votes
Dan Chase, Home Buyer, Texas City, TX
Thu Mar 18, 2010
I will miss some things.

you have the fees the banks charge to consider giving you a loan and processing the loan
appraisal fee to make sure the house has the value
(should have) house inspection
taxes due for rest of the year
transfer tax (cost of registering deed including state tax for buying)
title fee
title insurance
attorney costs to register the deed

(maybe could be wrong) house insurance cost
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