Although required by the lender in evaluating your application, an appraisal is nonetheless critical because it will reveal how much home equity, or ownership interest, you have accumulated through paying off your loan or from changes in the real estate market. Closing Agent or Attorney Fees. The lender will pass on fees paid for the services of the closing agent or attorney. Lenders who deal with Fannie Mae or Freddie Mac will charge you for PMI whenever you finance 80 percent or more of your home's value. All lenders require a credit check to determine your credit history.
Some mortgages carry penalties for paying off the loan ahead of time.
Remember to scrutinize closing costs carefully and question your lender about fees that seem too high. Consider the Good Faith Estimate of Settlement Costs your guide, as a consumer, to the service charges you'll be asked to pay. The lender or mortgage broker is required by law to provide it after you apply for the loan. Take your time going over the numbers.