Thursday, December 22, 2011

Getting a Handle on Closing Costs (Part 3)

SETTLEMENT COSTS GUIDE (BUYER)
(To be used for estimates only.)

  • Attorney, Settlement or Closing Fee:  $350.00  This fee is paid by the settlement agent, attorney or escrow holder to process the closing.
  • Title Search:  $125.00  Fee covers the costs of the title search and examination.
  • Document Preparation: $150.00 - $175.00  This is the fee that some lenders charge to cover their costs of preparation of final legal papers, such as a mortgage, deed of trust, note or deed.
  • Loan Origination Fee:  1% of Loan Amount.  This fee is usually know as the loan origination fee but sometimes is call a "point".  it covers the lender's administrative costs in processing the loan.  FHA regulates this fee to a maximum of 1% of the loan amount.  Often this is expressed a a percentage of the loan.  Generally the Buyer pas the fee, unless otherwise negotiated
  • Loan Discount Points (If Applicable):  Also called "points".  A loan discount is a one-time charge imposed by the lender or broker to either lower the rate at which the lender or broker would otherwise offer the loan to the buyer or may be used to lock-in the interest rate for an extended period.  This fee may very and be negotiated.
  • Survey:  $350.00  The fee for obtaining survey of property (not required by lender) but highly recommended by many Realtors.
  • Appraisal:  $350.00 Conventional, $300.00 FHA, and $500.00 VA.  This charge pays for an appraisal report made by an independent appraiser.  If  repairs are required by appraiser, a re-inspection fee of $75.00 - $100.00 per visit will be charged.
  • Credit Report:  $35.00 - $75.00  This is the cost to obtain credit report and credit score.
  • HOA Extoppel Statement:  $35.00 - $250.00  Fee the Buyer pays to transfer HOA from one owner to the next.  It show up as Capital Contribution on the HUD-1.
  • Title Insurance:  A fee for title insurance up to the loan amount required by lender's policy to protect them from defects in the title and up to the sales price for the owner's policy protection. Calculator: 
 http://www.invtitle.com/sites/all/modules/officelocator/themes/all/ratecalculator.htmOwner's

  • Title Insurance Policy:  This is a one time fee good forever.  Protects the homeowner from defects on the title and is based on the sales price.  (Attorney will figure this and have on the HUD.)  Strong recommendation for the Buyer to have owner's coverage in addition to lender's coverage.
  • Title Insurance Binder:  $75.00  Temporary title insurance expected soon to be replaced by a title insurance policy.
  • Underwriting Fee:  $325.00  This is a fee charged by the investor for underwriting the submitted loan file and all of its paperwork.
  • Recording the Deed of Trust:  $20.00 - $45.00  A deed is an instrument that conveys any interst in real property to another person or entity.  This is a fee for recording the new Deed at the Court House.
  • Recording the Mortgage:  $10.00 1st page; $3.00 each additional page.  fee for recording the formal mortgage document at the court house.
  • Tax Service Fee:  $85.00  This is a fee for service which monitors tax payments on the loan.
  • Flood Certification:  $15.00 - $35.00  Cost of determining if the property is in a flood zone.
  • Adiministration Fee:  $100.00  Photo copies/Express mail/Money wire/FAX/Copies
  • Miscellaneous Chages:  $150.00 - 200.00  This is a catch all for unexpected fees, which ther will always be.  Such as amortization schedules, assignments, mortgage and/or note preparation when Seller takes a 2nd mortgage, Power of Attorney, additional recording fees, etc.
"Always Check With Lender as I am not a Financial Expert.  Rely on Lender for more Complete Accuracy"


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