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Closing costs are mortgage fees over and above the price of the property, which you will be expected to pay at (or prior to) closing. There are three sets of fees that you will be responsible for:
Comparing Closing Costs Comparing the closing costs of different lenders can be confusing, because every lender has different fees and names for them. Loan fees, however, are a lender specific expense and the key to comparison shopping-beware of "junk fees'. Your loan officer will be happy to review any other lender's Good Faith Estimate with you. |
Common Fees |
Based on |
Charged by |
What it is for |
Application Fee |
Flat Fee |
Lender |
To process your application. |
Appraisal Fee |
Flat Fee |
Third Party |
To evaluate the market value of your home. |
Points Fee |
Loan Amount |
Lender |
To permanently reduce the interest rate over the life of the loan. |
Courier Fee |
Flat Fee |
Third Party |
To deliver closing documents. |
Credit Report |
Flat Fee |
Third Party |
To determine how well you have been able to meet your financial obligations in the past. |
Flood Certification |
Flat Fee |
Third Party |
To determine if your property is located on a flood plain. |
Document Preparation |
Flat Fee |
Lender |
To prepare the legal mortgage documents for closing. |
Underwriting Fee |
Flat Fee |
Lender |
To have your loan application reviewed by an underwriter. |
Tax Service Fee |
Flat Fee |
Third Party |
To set up and administrate your tax escrow account. |
Note: This is a list of commonly applied loan fees. Remember, not all of these will apply to your loan. Contact your loan officer for a list of those costs that apply to you. Settlement/Closing Fees These fees are not controlled or determined by the lender, and vary by state. For an explanation of these costs, we recommend that you contact your local attorney, escrow or title company. If you need further assistance, please call us. |
Common Fees |
Based on |
Charged by |
What it is for |
Title Insurance |
Loan Amount, Property Value, Location |
Title Company |
To ensure the seller has a clear title. |
Survey |
Property |
Surveyor |
To legally delineate the bounds of your property. |
| Attorney | Flat Fee |
Attorney |
To represent the buyer's interests. |
Transfer Tax |
Varies |
State/County |
To cover State/County Tax. |
Recording Fees |
Varies |
County |
To record your deed/mortgage in the county records. |
Note: This is a list of commonly applied settlement fees. Remember, not all of these will apply to your loan. Contact your loan officer for a list of those costs that apply to you. Prepaid Fees These fees are actually pre-payments of certain mortgage loan requirements, such as insurance and taxes. Payments are usually deposited into an escrow account. These are standard fees and rarely vary between lenders.
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