Read your Loan Estimate box by box
Page 2: sections A to J
What it means
Page two lists every estimated closing cost. Loan costs are A, origination charges; B, services you cannot shop for; and C, services you can shop for. Other costs are E, taxes and government fees; F, prepaids; G, the initial escrow deposit; and H, other. D and I are subtotals, and J is the total after lender credits.
Last reviewed against the primary sources listed below.
The sections
| Section | Contents | Lender controls? |
|---|---|---|
| A | Origination charges, points | Yes |
| B | Appraisal, credit report and other required services the lender picks | Chooses providers |
| C | Title and other services you may shop | You can choose |
| E | Recording fees and transfer taxes | No |
| F | Prepaid interest, homeowners insurance, property taxes | No |
| G | Starting balance of the escrow account | No |
| H | Other costs, such as HOA fees or optional owner's title | Varies |
| J | Total closing costs less lender credits | Partly |
Calculating Cash to Close
The table at the bottom of page two starts from total closing costs and adjusts for financed costs, the down payment or funds from the borrower, deposits, seller credits and adjustments. On a refinance it may show cash to you.
Where to focus
Section A is the cleanest comparison between lenders because it is the lender's own charge.
Questions people have with the form in hand
Does cash to close include the down payment?
Yes. On a purchase, the Calculating Cash to Close table includes the down payment along with closing costs, minus deposits and credits.
Who pays the most closing costs?
It depends on the contract and local custom. The Loan Estimate shows what the lender expects you to pay; seller credits appear in the cash-to-close table.