How do closing costs work and what do they include?

Closing costs are the fees associated with financing a home. Some closing costs are fixed, while some vary based on loan amount and/or home value. Also, some of the Closing Costs are Network Funding’s fees, while others are for third party service providers (such as the title company, appraiser, surveyor, etc).

A breakdown of the closing costs is provided to you at the beginning of The Loan Process, in the form of a Loan Estimate (LE)*. Network Funding is required to provide reasonable and accurate estimates of third party service provider fees (fees that we do not control).

It is also worth noting that some closing costs are allowed to be covered in-part or in-full by the home seller. The amount of closing costs the seller can cover varies from one loan product to another. Make sure you ask your Loan Officer how much the seller may be able to cover for your particular transaction before you enter into a sales contract.

*note: On 10/3/15 the “LE” replaced what was historically referred to as the GFE (Good Faith Estimate) & TIL (Truth In Lending) disclosure documents.

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