Best Way to Understand Closing Costs

Best Way to Understand Closing Costs

Federal law requires lenders and mortgage brokers to give you a booklet within three days of applying for a mortgage loan.

It’s called Shopping for Your Home Loan, and it’s a well-written guide in plain English.
Download the pdf to your computer or ipad, and consult it as you move through the Homebuying process. It can help you become familiar with a number of important things:

  • how interest rates, points, balloon payments, and prepayment penalties can affect your monthly mortgage payments.
  • Important information about your loan after settlement, including how to resolve loan servicing problems with your lender, and steps you can take to avoid foreclosure.
  • After you have purchased your home, identify issues to consider before getting a home equity loan or
  • refinancing your mortgage. Finally, contact information is provided to answer any
  • questions you may have after reading the booklet.
  • Glossary of Terms in the booklet’s Appendix.

RESPA is a federal law that helps protect consumers from unfair
practices by settlement service providers during the home-buying and loan process.

 

Read Guide to Settlement Costs

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