Q: What is the catch with all the advertisements that claim they can give you a home loan with zero closing costs?

Our loan officer’s good faith estimate was over $12,000 on a $400,000 loan. Do those other companies take advantage of you in some other way?

A: You can get a loan with zero closing costs, but you will pay a higher interest rate. Almost all lenders will offer to do this. Typically, you’ll pay .25 to .50 percent higher on your interest rate.

But, the first question you have to ask is what does the $12,000 include? It seems high to me.

I’d talk to several different lenders and try to get them to bid on your business. Shopping around really works, and you’ll probably come up with a better offer.