The Scoop on Closing Costs: Good Faith Estimate and Choosing a Title Company

Did you know: When you are buying your home, all mortgage lenders are required by law to send you a Good Faith Estimate (GFE) within 3 days of your loan application.  So what exactly is the GFE?

Just like its name, the GFE seeks to provide you with a "good faith" estimate of your closing costs.  It will list things like lender fees, insurance costs, title insurance costs, and government recording fees.   Once you receive your GFE, you should feel free to contact your lender if you have any questions about any fees that you see.

One of the fees you will see will be title preparation charges. These are the fees that title companies charges in order to prepare your closing documents, prepare a title binder, and issue title insurance.

Did you know: You as the buyer have every right to select which "title company" you'd like to purchase with.  Different title companies might have different fees, and it's your right to close with whomever you would like.

- Sukwon Lee