First Time Home Buyer – Closing Costs

If we're talking about closing cost The closing cost, some of them are fixed like the title fees, but some of them are just the cost of doing business

To hire the people and to buy the paper and those sorts of things In a credit union like Universal 1, those costs generally reflect what it really cost to put that loan together for you For a profit institution, the cost are for-profit So when you're shopping for a loan, you'll see those costs usually higher in a commercial bank than you see in a credit union What you'll also see is, if I'm talking about rates, an institution can offer you a lower rate, but raise your costs

So the profit margin is typically the same The institution has decided on a profit margin So the interest rate can be higher to cover that or the cost can be higher to cover that That's why it's so important to have estimates in writing so you know exactly what you're getting into