These are the costs to complete the processing of your loan request. The majority of these fees are for third party services rendered. The following reflect normal closing costs and an explanation of why they are required.
- Appraisal Fee - An appraisal establishes the value of the property for the bank to use as security on the loan. This fee is paid to a licensed and state certified appraiser.
- Credit Report - The credit report is used to determine the borrowers credit history and reflects his ability to repay his debt. This fee is paid to an outside source.
- Tax Service Fee - This is a onetime fee at closing used to validate the payment of property taxes in a timely manner for the life of the loan.
- Flood Certification Fee - Per Federal Regulations, all properties must be certified that they are not in a FEMA designated 100 Year Flood Plain. If so, flood insurance must be purchased. This fee is paid to a third party Flood Zone Certification company.
- Document preparation fee - The fee to cover the costs of preparation of final legal papers, such as, mortgage, deed, and note.
- Prepaid Interest - The amount of interest due and collected from the date of your mortgage closing to the end of the month.
- Recording Fees -The costs to record the deed and mortgage; thus perfecting a lien on the property.
- Title Insurance -"Title" refers to the legal ownership of your home. Title Insurance is required to protect you against loss resulting from claims (liens or encumbrances) by others against your property.
- Auditor Fee - The fee paid to the County Auditor to record sale information that is required by the State.
These costs will be outlined in your Good Faith Estimate at time of application.
Contact us for further information.
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