Question:

How many settlement closing costs do I have to pay?

Answer:

When you apply for a loan, the lender should point out on the Good Faith Estimate (GFE) what settlement closing costs will be paid. Lenders may offer a packaged price for the settlement costs, but on the GFE it may be reasonable to ask for per item listing.

Why ask for separate settlement closing costs on the GFE?

What you are interested in is 3rd party fees. Lender preferred title and escrow servicers, and mortgage insurers may not offer the best deal to you. In some states shopping for title services pays out a lot. If the state controls title fees, shopping for title may not be necessary. However, though, escrow and mortgage insurance should be shopped for.

Demand that lenders separate their in-house fees from property taxes and third-party services. This will help evaluate the mortgage quote better and help avoid excessive referral fees.

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