Mortgage lenders have an obligation to give you a good faith estimate of the closing costs that will be due when the time comes. This estimate is required thanks to the federal Real Estate Settlement Procedures Act. A good faith estimate can also be called a GFE and this document needs to be given to you after no more than three days after you have applied for the loan. This document does not necessarily have to be in your hands after three days but it does have to have been mailed in that time.

Closing fees are something that every home loan will have to deal with. These too can go by another name: settlement costs. These fees are the accumulation of all the costs of the expenses of the sale of the home and the mortgage. These costs can be pretty hefty adding up to as much as 5 percent of the entire sale price of the home. It is in your best interests not sign ay loan contracts until you see what they are going to ask for the closing costs.

Not all lenders have the same closing costs and if you want to make sure that you are getting the best deal at closing you are going to want to get closing cost estimates, good faith estimates, from more than one lender. If you notice that one lender has a much larger closing fee than the others ask them why this is.

Good faith estimates are made up of many different fees. The following are just some of the fees that you will see on your estimate:

Mortgage broker fee
Discount points
Rate lock
Tax related service fee
Property appraisal
Origination points
Lender's inspection
Credit report
Title examination
Notary
Wire transfer
Assumption
Application
Attorney
Commitment
Pest inspection
Document preparation
Condominium application
Insurance

Remember that your good faith estimate is nothing more than that, which means that when closing actually does roll around the cost could be much higher. Not all of the closing fees will come straight from the lender but these are the ones that you will need to keep track of and compare closely with the other estimates that you have received. Some parts of the closing will be government regulated so no matter who you choose as your lender these fees will be exactly the same.

The fees that the lender controls are:

Origination points
Discount points
Assumption
Rate lock
Underwriting
Credit report
Taxes services
Application
Commitment
Wire transfer fee

It is these fees that are somewhat negotiable. If you think that you are being charged too much then talk to the lender about it and see what they are willing to do for you. There are even some lenders that will cut some of their fees out completely. But if you don't ask they won't, so don't be afraid to bring it up.

Third party fees are not controlled by the lender, in fact lenders are not supposed to have anything to do with these fees at all besides giving them to you. They are not permitted to tamper with them at all for their own gain.

Third party fees include:

Examination
Settlement
Preparation of documents
Service fees
Lawyer
Title search
Appraisal
Title insurance

These fees are not as negotiable as some of the others but if you see a huge different between a couple of the lenders you are considering then ask about it. You have nothing to lose.

Some of the above fees can sometimes be ones that you can shop for yourself. And this depends also on the state in which you live since some of the states in America attorneys are a necessary part of the closing process. The service that you choose to use for the closing is something that you have control over as well as your insurance. By shopping for your own insurance you can save hundreds if not thousands of dollars.

Some of the fees that are part of closing are non negotiable such as the recording fees and some tax related fees. These are regulated by the government and there is nothing you or the lender can do to lessen these fees.

It is important that you not trust every single thing that your lender is trying to tell you concerning the fees. DO the research yourself to see if you are getting the best rates and terms. Comparison is the only way to go when trying to decide which lender to choose for your mortgage. Check every item on the estimate list and if you see anything that seems wrong make sure to bring it up with the lender. IF it is a national lender that you are working with you will have to be much more careful when it comes to the estimate because they can sometimes have trouble coming up with accurate estimates. This is due to the fact that they are dealing with borrowers in all different states and each state has its own way of doing things and its own costs as well. These fees can even differ from county to county.

Ask your lender about all of your options for paying the closing fees. Some of the fees might be able to be split up over time rather than paid all at one time. These types of questions are important and they can make the entire process much easier.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today