Closing costs are any fees associated with processing and closing the loan. Examples include the cost of the appraisal, underwriting, courier (i.e, FedEx or USPS), title insurance, credit report, and loan discount points. Theses fees are used in calculating the loan's APR and are listed in a document you will receive called a HUD-1. Before the HUD-1, an estimate of closing costs will be generated called a Good Faith Estimate. Direct Mortgage will provide you with both these documents.
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