Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items".
"Non-recurring closing costs" are any items which are paid just once as a result of buying the property or obtaining a loan.
"Pre-paids" are items which recur over time, such as property taxes and homeowners insurance.
A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.
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