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48 Meriden Rd, Suite 1, Middlefield, CT 06455

Understanding Closing Costs

Loan estimate documents are issued within three days of receiving your mortgage loan application. In them, you’ll find all the costs associated with your particular loan. Some of these costs may change before you close on your loan, while others are set unless you’re provided a revised document.

Let’s take a look at the three subcategories of costs to see whether or not changes could occur:

No variations:
• Lender and broker charges
• Fees paid to affiliates of your creditor or broker
• Fees paid to unaffiliated third parties if shopping is allowed
• Transfer taxes

Variations permitted:
• Prepaid interest
• Certain real estate taxes
• Property insurance premiums
• Money placed in escrow
• Charges paid to third-party providers which aren’t on your creditor’s approved vendor list
• Charges paid to third-party providers which aren’t required by your creditor

Limited increases. (Up to 10% aggregate):
• Fees paid to third-parties if shopping is allowed and included on your creditor’s approved vendor list
• Recording fees
• Services you may shop for, but choose not to

Contact us if you have any questions about your loan estimate or final closing disclosure.