At times it can be difficult to wade through the many costs associated with buying a home. It is advised that you compare 2 or 3 financial institutions before committing to one, as their fees, programs, and loan rates can vary significantly. Here are some of the costs involved in buying a home and what they are:

Appraisal Fee: Fee charged by the lender for the appraisal to assess the fair market value of a house or property.

Loan Origination: Your lender charges this fee for processing your mortgage.

Title Insurance: Insurance written by a title company to protect the lender and home owner against loss in the case of undisclosed liens or defects in title to the property.

Credit Report Fee: Fee charged by the lender to secure a credit report on the Buyer. Banks are required to secure credit reports from two of the three Credit Repositories in the United States--Equifax, Transition, and TRW.

Escrow Fee: Paid to the escrow company for preparing papers, accounting for all funds, and closing and recording the transaction.

Pre-paids: money collected up front and held in escrow are:

• Real Estate Taxes: Annual property taxes
  
• Hazard Insurance: Insures the buyer and lender against loss due to fire, wind, and theft. This does not include earthquake, flood, or slide insurance. Consult your insurance agent for details.
  

Good Faith Estimate

Within three days of making a loan application, the lender is required to provide you with a "Good Faith Estimate" that lists your anticipated closing costs. This required document reflects an estimate of the amount you will pay for all loan related fees, including points.