Why are my closing costs more than my good faith estimate?
According to federal law, lenders must provide loan applicants with a good faith estimate of closing costs within three days of applying for a loan. However, keep in mind that the good faith estimate is simply that – an estimate.
Adjustments to good faith estimates are common, especially for items like pre-paid interest, which accrues daily. Collections for escrow accounts and home owner’s association dues, as well as other fees may also increase total closing costs.
Check with you lender if you see a line item on the HUD-1 Statement, if you think it seems excessive. (You will receive the statement prior to closing.)

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