Closing Cost
Throughout the loan process, it often seems as if someone is always asking you for more money. Listed below are several different types of fees you may be asked to pay. Before you agree to work with any lender you should get a written estimate, called a good faith estimate, of all of the expenses they will charge. Ask if any of the fees are refundable if you do not qualify for the loan, or if they can be paid at closing rather than in advance. If you think the fees are too much, check with another lender to see if they charge the same loan fees.

* Engineer Inspection
* Loan application fee
* Appraisal fee
* Credit report fee
* Processing fee
* Document preparation fee
* Bank Attorney Fee
* Title Search and Title Insurance
* Mortgage Tax
* Recording
* Survey

Points
In addition to charging you interest each month, many loans require you to pay some interest in advance. This interest is called points. Each point equals 1 percent of your loan amount. For example, if you are taking out a $95,000 loan, one point would cost $950.

Escrow Impound Account
At the beginning of the loan and again at the beginning of every year, the lender estimates how much the taxes and insurance will cost for the year and divides the cost by 12. The lender collects the money monthly and saves it in a special account called an escrow impound account. When the bills are due the lender pays them. This is a convenience for the borrower but also protects the lender in case the borrower does not have money or just forgets to pay these expenses.