Mortgage Center

After consumers complete the loan application and have chosen a loan type, the lender provides several documents to borrowers that disclose important aspects of the loan. These documents are provided within 3 days of receipt of the application and are required by Federal Regulation. The documents are:

Estimated Closing Cost Statement: Lenders provide an estimate of the closing costs incidental to obtaining a loan. Some of these costs are:

1. Loan origination fees: the cost to obtain the loan paid to the originating lender or broker.
2. Loan discount/ premium fees: paid to or received from the secondary market investor depending upon the interest rate.
3. Processing, underwriting, and document fees: some lenders charge for their services associated with making the loan.
4. Appraisal and credit report fees: These fees are generally collected by the lender and paid to outside companies performing the services.
5. Title, escrow, and closing agent fees: These companies charge various fees for their services.
6. Private Mortgage Insurance: Generally, the first year premium is paid in advance.
7. Property and Hazard Insurance: All or a portion of these may be required to be paid.
8. Prepaid Interest: Depending upon the time of the month the loan closes, interest may be prepaid.
9. Incidental recording, delivery, wire, etc. fees: These fees are all normal fees charged to the consumer.

Settlement Cost, A HUD Guide: This booklet gives an overview of the lending process and is required by HUD. The booklet is provided to consumers after the loan application is completed.