Closing Costs

You will incur closing costs when you finance a property. Your loan apllication package will include an estimate of these costs. This document is called a Good Faith Estimate.

It's important to separate "Negotiable Closing Costs" from  "Non-negotiable Closing Costs". Why? Because you do not want to waste your time and energy focusing on the "Non-negotiable Closing Costs".  

At the closing table, all cashflows associated with your real estate transaction are presented in a HUD-1 Settlement Statement; a prescribed form from the U.S. Department of Housing and Urban Development (HUD).

This form itemizes all charges imposed on the borrower and the seller in connection with the settlement of the real estate transaction.

At least one business day prior to your closing, you have the right to inspect your HUD-1 Settlement Statement. It is highly recommended that all "Negotiable" Closing Cost items be finalized several days prior to attending the closing table.