Greetings neighbors,

Those who have purchased a home may know how it feels to find a home and make the decision to purchase but have no idea what the closing costs of the home will be. Today, RisMedia reported that new regulations have been set in place for RESPA (Real Estate Settlement Procedures Act).

The new regulations that began on January 1, 2010, will allow consumers to know the required closing costs, which is 5% of the purchase price, in advance including: costs of obtaining a loan and estimated costs for title insurance, settlement and other services within three days after applying for a mortgage.

The GFE (Good Faith Estimate) and the HUD-1 Settlement Statement are forms used in the closing cost and have been improved to help buyers understand estimated costs. This will enable consumers to compare final costs during the closing process. The new GFE will inspire buyers to shop around and compare before settling on a mortgage. The new HUD-1 Settlement Statement will allow buyers to compare GFE estimates to the final HUD-1 closing statement.

As a result of the new regulations, The Department of Housing and Urban Development estimated an average of $668 saved by consumers.