What are the main questions to ask a mortgage specialist when applying for a FHA loan. I received an GFE with almost 10k in closing cost. What are the items that are negotiable on the GFE. I'm new to this home buying thing and need all the advice I can get. Help!

Best Answer

Actually $10,000 seems high, however we don't know the loan amount. Perhaps the lender has includes your 3% FHA fee into the loan. The origination fee is negotiable. Standard is 1% or less, however, if the lender is also asking for an application fee tell them 'no'. The loan commitment fee is also negotiable as are most of the lender 'fees'. If s/he is setting up an escrow account determine if they are trying to fund more than 3 months worth of your expected homeowner insurance costs and property taxes. That will also cause your balance to be high.

Just remember that it is an 'estimate'. It can be higher or lower. If your credit score is higher than 700, you can also search out other lenders.