A preliminary estimate of the fees associated with closing your loan, the Good Faith Estimate is the basis for the final figures you will receive before closing on your loan. The Good Faith Estimate may include:

• Application Fee—
A non-refundable fee for applying for your mortgage loan.
• Processing Fee—
This fee covers the costs associated with the preparation of supporting documents for loan underwriting.
• Underwriting Fee—
This fee covers the underwriting risk on your loan.
• Loan Origination Fee—
The fee charged to you for originating your loan. Typically this fee is 1% of the loan amount and may be combined with the discount points charged.
• Discount Points—
This is a one-time fee charged on loans that have an interest rate lower than the "market rate." As the interest rate charged decreases, the discount points increase.
• Appraisal Fee—
A fee charged by an appraiser that can range from $200 to $600, depending on where you are in the U.S. and the type of property involved. We attempt to use local appraisers who are familiar with your geographic areas and always attempt to arrange a timely and cost-effective appraisal for you. You pay the appraisal fee either at the time of the appointment or at closing.
• Tax Service Fee—
This fee covers the cost to research the tax payment history of your property.
• Flood Certification—
A fee for certification from the Federal Emergency Management Agency (FEMA) that your property is not in a flood zone. This is required for all properties.
• Pre-Paid Interest—
Interest must be charged from the day your loan is funded to the first day of the next month. On your Good Faith Estimate, we assume 15 days of interest, although the final amount depends on the day you close your loan.
• Wire Transfer fee—
A fee charged for wiring your funds (may come through the Title Company).
• Private Mortgage Insurance (PMI)—
On loans over 80% Loan-to-Value (LTV) and on certain types of loans, Private Mortgage Insurance may be required. Designed to protect the lender should you default on your loan, you pay this insurance monthly. Another option we offer is the Pledged-Asset Feature, which allows you to borrow up to 100% of the value of your home, without the requirement of Private Mortgage Insurance, when you pledge eligible securities in a Morgan Stanley brokerage account.
• Reserves/Escrow—
At closing, many lenders collect several months estimated taxes, hazard insurance, and PMI (if applicable).
• Settlement Fees—
These fees are charged by the Title Company, and/or your attorney, for handling all the paperwork and financial transactions associated with your closing. The fees are based on loan amount and type of property, but they vary widely from state to state.
• Title Insurance—
Title insurance guarantees your home has no outstanding liens against it. This fee varies greatly from state to state, and you should contact your Escrow Company for a better idea of what your exact title fees will be.
• Additional Charges—
These fees are for recording your deed of trust, assignments, grant deeds, or any other documents that need to be recorded. And if a survey, quit claim deed, or subordination agreement is required, there may be additional charges. City/county taxes may also be charged, if applicable.
• Courier Fees—
These fees cover the costs of overnight mail charges and courier fees for your documents.
• Escrow –
An escrow account is established by the lender into which the borrower pays monthly installments towards property taxes and insurance. When Mortgage Insurance is required, escrow of taxes and insurance is also required. Usually, escrow is designed to protect the lender should the borrower neglect to pay the property taxes and/or insurance. Clients may also elect the escrow feature if they would like the convenience of the property tax and hazard insurance payments added to their monthly statements. Escrow offers many borrowers the convenience and security of predictable monthly payments, which are added to the minimum payment amount.