FHA Loan Closing Costs

FHA Loan Closing costs with 1st Continental Mortgage, while they can vary by state, all comprise the same structure with a FHA Loan whether for Purchase, Refinance, or Heloc loan types.

These costs are fully disclosed on your GFE (Good Faith Estimate) and will be reviewed with you prior to the ordering of an appraisal (If needed) or within three business days of your application.

Fee's are the costs for the borrower for consultation and to complete the loan transaction. Each section of the GFE reflects various associated costs.

The Four Types

Basically, there are Four Sections. Each section has its own set of fee's that are reflective of either Lender Requirements, Title Company/Attorney Requirements or Government Requirements. The fees that apply, vary by the loan product, type and state.

HUD's original intent of the required GFE was for it to have the True and Total closing cost fully disclosed to the borrower within an amount of time sufficient for allowing the borrower to make a sound decision.

Unfortunately, some Lenders and Brokers have attempted to "avoid" this process and used the fact that it was an "Estimate" to not fully disclose what your real closing costs will be. We NEVER attempt to hide the true cost of a loan from our clients.

1st Continental Mortgage believes in full disclosure, accurate disclosure is the rule, not the exception.

In order to facilitate this accuracy however, we must have an application, credit report and client consultation in order to know the loan product(s) we are working with.

We typically do not do good faith estimates without these important details for accuracy reasons.

Types of Closing Costs

Below are samples of Loan Costs you should look for whenever you get a GFE from anyone.

Lender Fees:

Underwriting, Loan Processing, Wire Transfer, *Courier, *Federal Express, Loan Origination, Points, *Credit Report, Application, *Flood Certification, Tax Service, Funding, Prepaid Interest, & Commitment.

Title Company/Attorney Fees:

Settlement, Closing, Title Search, Title Inspection, Warehouse, Insurance Binder, Owner Policy, Lender Policy, Document Prep, Notary, Attorney, Form 9, Alta 8.1, & Alta 5.1.

Gov't Related Costs:

Recording Fee's, County/City Doc Tax, State Doc Tax, Appraisal, Survey, Termite Inspection, & Home Inspection.

Escrow's:

Property Taxes, Home Owner Insurance, & Flood Insurance.

* Typically third party charges