Types of closing costs - Certain areas of the country may have added closing costs, but these are the general types of closing costs you might see at closing:
Attorneys or escrow fees
Property taxes
Pre-Paid Interest
Loan Origination fee
Recording fees
First premium of mortgage Insurance
Title Insurance
Loan discount points
First payment to escrow account for future real estate taxes and insurance
Paid receipt for homeowners insurance policy Underwriting fee
Tax service fee
Broker fee
Appraisal Fee
Always take your Good Faith Estimate with you to compare to the fee's on the final HUD statement. You want to make sure that there were no extra added fee's.
Closing costs are fees associated with any real estate loan transaction.
Federal law requires the lender to disclose all reasonable fees at the origination of the loan on a 'good faith estimate' within 3 days of application.
All actual closing costs are then again disclosed on the closing documents , commonly called the HUD .
Property taxes may be credited to you if they are paid in the back or you may have to pay the property taxes if they are prepaid in that particular state.
Prepaid interest is the interest per day that the lender charges for using the money. For example if you close on the 10th of the month you will pay interest for aproximately 20 days (in a 30 day month) for using their money for 20 days then on the first of the following month your interest will start to accrue daily for the full month. The purpose is so that when you make your first mortgage payment you are only paying the 30 days worth of interest and some to the principal compared to paying for 50 days worth of interest if you were not to pay the prepaid interest.
