When you apply for a loan, your lender should give you a good faith estimate of closing cost. It is important to understand which costs can change when you go to settlement:
Costs that can't change:
- Origination Fees
- Points (after you've locked in an interest rate)
- Adjusted origination fees after you've locked in an interest rate
- Transfer taxes
Charges that can increase up to 10% in aggregate
- Required services selected by the lender
- Title services, lender's title insurance and owner's title insurance, if selected by the lender
- Government recording charges
No limit on increases
- Required services selected by the borrower
- Title services, lender's title insurance and owner's title insurance, if selected by the borrower
- Daily interest changes
- Homeowner's insurance
- Initial deposit for escrow
For more information on this subject visit
http://www.usatoday.com/money/economy/housing/2010-01-17-closing-cost-rules_N.htm
