Closing Costs

Closing Costs

Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items".

"Non-recurring closing costs" are any items which are paid just once as a result of buying the property or obtaining a loan.

"Pre-paids" are items which recur over time, such as property taxes and homeowners insurance.

A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.

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