| 1.
Credit reports. |
Usually
around $60. Paid at the time of
formal loan application.
Non-refundable. |
| 2.
Property Appraisal Fee. |
Usually
around $350. Paid at the time of
formal loan application or at closing.
Non-refundable. |
| 3.
Origination Fee. |
The lender's
charge for loan processing and
handling. Customarily 1% of the loan
amount, paid by the buyer. |
| 4.
Discount Points. |
Vary with
mortgage conditions and may range from 0
to 5 or more. Each point is 1% of
the loan amount. Points represent
the difference between the loan's rate of
interest and the discount to this interest
that the lender will have to offer to sell
the loan to a buyer of loans or a loan
investor. Points may be paid by the
buyer, seller or both. |
| 5.
Mortgagees Title Insurance. |
Usually
around $100. The lender (who is the
mortgagee) requires the borrower to
purchase a title insurance policy to
protect the mortgagee against title
defects that would affect the loan.
(Note: The seller purchases a title
policy for this protection for the buyer.) |
| 6.
Improvement and Location Survey. |
Usually
around $150. Shows the property
boundaries and the location of the house
and improvements. |
| 7.
Document Preparation. |
"Doc
Prep." Usually around
$100. This is a charge for
completing and handling the paper-work
associated with the loan. |
| 8.
Commitment Fee. |
Usually
around $200. A lender's fee. |
| 9.
Recording Fees. |
Usually
around $35. Fees charged by the
government for recording in the county
records the documents associated with the
purchase (i.e. the warrant and trust
deeds). |
| 10.
Pre-paids. |
These are
collections in advance for loan interest,
homeowners insurance and property
taxes. Daily interest from the date
of closing until the end of the
month. One year homeowner's
insurance premium for the coming
year. 2-3 months in advance payment
for the following year homeowner's
insurance premium which is placed in the
purchaser's escrow account. 2-4
months worth of property taxes are placed
in the purchaser's escrow account over and
above the seller's credit to purchasers. |
| 11.
State Documentary Fees. |
"Tax
Stamps." $.01 per $100 of sales
price. |
| 12.
Real Estate Closing Fee. |
Usually
$200. (Normally split 50/50 between
buyer and seller). |
