The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:
Down payment
Loan origination fees
Points, or loan discount fees, you pay to receive a lower interest rate
Appraisal fee
Credit report
Private mortgage insurance premium
Insurance escrow for homeowners insurance, if being paid as part of the mortgage
Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for
taxes and insurance in escrow accounts as they are paid with the mortgage, then pay
the insurance or taxes for you.
Deed recording fees
Title insurance policy premiums
Survey
Inspection fees—building inspection, termites, septic, etc.
Notary fees
Prorations for your share of costs, such as utility bills and property taxes
A Note About Proration’s: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.
