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Are all "no closing cost" loans the same? Some lenders not only offer "no closing cost" loans, but they also offer a "credit" that can go above and beyond paying all of the closing costs. What does this mean to you? This can result in a credit that can be in the thousands of dollars which can be used to pay for your homeowners insurance, property taxes, or daily interest. In a nutshell, a lower loan amount or more cash back to you at closing. Most lenders do not discuss this credit with you, at Budica Financial, most of our loans offer this credit that sometimes can be in the thousands of dollars. The bottom line is if two lenders are offering the same interest rate with no closing costs, then the one who offers the most credit would be the best choice.
"Closing Costs" are the fees that pay for the various services involved when you sell or buy residential real estate or refinance. Sellers & buyers negotiate the payment of these closing costs.
As the list below indicates, many of the costs result from getting your mortgage. At Budica Financial Corporation, we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on closing costs related to your mortgage in your "Good Faith Estimate".
Good Faith Estimate (Also know as the GFE)
Buyers get a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs specified in the Good Faith Estimate are estimated based on Budica Financial Corporation's experience with mortgage loans, but costs usually change by small amounts between delivery of the GFE and closing. We will be glad to review the "Good Faith Estimate," answering questions and highlighting costs that can change slightly at closing.
Below you'll find a fairly general list of closing costs. We will provide a specific list of your closing costs when we give you a Good Faith Estimate.
Standard Closing CostsLoan-Related Costs
- Loan-related costs
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Fee
- Credit Report
- Interest Payment
- Escrow Fees
- Recording Fees and Transfer Taxes
- Flood / Quake Insurance if applicable
- Private Mortgage Insurance (PMI)
- Title Insurance