24. Closing Cost Details

by Local Title

As you review Page 2 of your Closing Disclosure, you’ll encounter detailed information about specific closing costs associated with your mortgage loan. Here’s a closer look at what you’ll find:

Section A: Origination Charges This section outlines origination charges collected by the lender, including fees paid to brokers, loan officers, or other parties involved in facilitating the loan process. Additionally, it may include discount points, which represent prepaid interest paid upfront to lower the interest rate on your loan. It’s crucial to compare these figures with those provided in your original Loan Estimate to ensure consistency and accuracy.

Section B: Services You Could Not Shop For Covering services for which you did not have the opportunity to shop, this section outlines expenses such as appraisal fees, credit report fees, and fees for assessing flood risk. The total of these costs should fall within 10% of the total amount estimated in your Loan Estimate, providing a degree of financial predictability during the closing process.

Section C: Services You Could Shop For In contrast to Section B, this section includes services for which you had the option to shop and select providers. If you chose service providers from the lender’s written list, the costs should be within 10% of the amounts specified in your Loan Estimate. However, it’s important to note that the set of services available for shopping may vary depending on the specific terms of your loan.

Section E: Recording Fees and Other Costs Recording fees, along with other specified costs in Sections F, G, and H, are detailed in this section. While recording fees should be within 10% of the estimated amount in your Loan Estimate, other costs in these sections may vary without tolerance limits. It’s essential to review these costs carefully to understand your financial obligations at closing fully.

Breakdown of Costs Page 2 of the Closing Disclosure also provides a breakdown of costs, distinguishing between expenses you will pay before or at closing, costs covered by the seller, and any additional expenses paid by third parties. Additionally, any credits from your lender are noted, providing a comprehensive overview of the financial aspects of the transaction.

By closely examining Page 2 of your Closing Disclosure, you can gain a thorough understanding of the specific closing costs associated with your mortgage loan. Comparing these costs to those outlined in your Loan Estimate can help ensure transparency and accuracy throughout the closing process. If you have any questions or concerns about the details presented, don’t hesitate to consult with your lender or real estate professional for clarification and guidance.