Closing Costs: Loan Fees, Settlement Fees & Prepaid Fees
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 fees you will be
responsible for, either by paying them from your cash-out, savings, financing them in the loan or with a
higher interest rate to cover the expenses:
Comparing Closing Costs
Comparing the closing costs of different lenders can be confusing because every lender has different fees and names for them. Prepaid and Settlement fees are standard fees, and are the same regardless of the lender.
Loan fees, however, are a lender specific expense and the key to comparison shopping. Again, different lenders have different names for their fees, so beware of hidden expenses. Our expert loan officers have experience evaluating closing costs, and are happy to review any competitor’s Good Faith Estimate with you and clearly compare it with our own.
Loan Fees
These fees cover the cost of processing your loan.
They vary by state and depend largely on the type of loan program
for which you've applied. Occasionally, they include charges by
third party companies required to process your loan. You can
obtain a Good Faith Estimate of all your closing costs, as well as
an explanation of these fees, by contacting a Associate Mortgage loan officer.
Contact Us.
^ Top
of page
|
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.
^ Top
of page
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
email us or call us at (561) 228-8563 or toll-free at
(888) 431-6387.
|
Common Closing
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 or Doc Stamps |
Varies |
State/County |
To cover
State/County Tax |
|
Recording
Fees or State Tax |
Varies |
County |
To record
your deed/mortgage in the county records. |
|
Intangible
Tax |
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.
^ Top
of page
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.
Real
Estate Taxes (2 months to 1 year) Homeowner's Insurance (14 months) Prepaid Interest (Pro-rated for remaining days in month that you close) Mortgage Insurance (if applicable to your
loan, 2 months typical)
To see more about HUD Settlement Cost Statement which you may receive
one day before Closing-law states that you must make a request in order
to receive the HUD Statement before Closing-
click here
More information is available through
HUD
^ Top
of page
When you get a Florida mortgage through us, we want it
to be a great experience!
Contact us directly at (561) 228-8563 or (888) 431-6387,
ask us a question
or two. Or, click on our Live Chat to
message us now!
We look forward to hearing from you,
our most important client!
Page Updated: 07/31/2007 First Published: 2001 |
