Many lenders sell the loans to investors. The standardized analysis of your application is required so that your loan will be acceptable to investors. Pay careful attention to your lender's request for information. Be sure you understand all the requests. If you have had credit problems, be prepared to explain exactly what happened, and why a lender should not be fearful of a reoccurrence.
Closing cost are any fees paid by the buyer at the close of escrow.
In addition, you will be asked to prepay interest charges to cover the partial month in which you close escrow, and the first year's premium of your fire insurance policy. Closing costs will vary by area. Ask your title or escrow officer. In California, funds must be held by the escrow holder at least 24 hours before closing. Often buyers have their savings in a money market account, operating out of state.