Demand to see the HUD-1 Settlement Sheet at least one day before the scheduled closing. Review every scheduled charge on the HUD-1 Settlement Sheet and compare it to the Good Faith Estimate. A Good Faith Estimate should be received within three days of applying for a loan.

Note there are no federal standards that regulate how much of a variance the Good Faith Estimate amounts must be from the HUD-1 Settlement Sheet to be considered over-inflated or abusive. Be sure to ask questions about charges that look over-inflated or unfounded. Borrowers have the right to challenge unearned markups in federal court.

Federal law guarantees that homebuyers can choose their own settlement service providers. A borrower can walk away from a home purchase transaction if they feel the closing costs are inflated. If the buyer decides to walk away from the transaction, generally the liquidated damages money that was stipulated in the purchase contract will be forfeited.