Typical loan related closing costs & fees

Following are certain standard or typical costs associated with closing on the sale of real property. As a general rule, some fees are split between the buyer and the seller, and are best spelled out in the purchase and sale agreement/offer.

Good Faith Estimate

At the time the loan application is submitted to the lender, the borrower will receive a "Good Faith Estimate" of the estimated closing costs associated with their loan request. The loan professionals at Tripoint Mortgage Group will be glad to review the "Good Faith Estimate," and honestly answer any questions you may have regarding specific costs and fee's.

Typical Loan-Related Costs Loan Origination Fee This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount. Points (optional) An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $100,000 loan, 1 point would equal $1,000. Appraisal Fee The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted. Credit Report The lender uses a credit report to determine the creditworthiness of the loan applicant. This fee is often paid when the loan application is submitted. Interest Payment Typically the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15. Your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required. Escrow Account At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account. Taxes Property taxes a governmental tax on real property based on a specific tax rate (so many dollars per $100 value of the property.) The value is usually established by a county official, an Assessor. Transfer Taxes Are taxes levied on the transfer of real property or on real estate loans by and paid to state and/or local governments. Recording Fee's Charges for recording the transfer of real property, paid to a city or county government. Insurance Homeowner's Insurance A policy which covers a home owner for any loss of property due to accident, intrusion or hazard. Flood Insurance Supplemental insurance which covers a home owner for any loss due to water damage from a flood. Often required by lenders for homes located in FEMA-designated flood zones. Private Mortgage Insurance (PMI) A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is greater than 80%. Title Insurance A policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. This also covers a lender should a question of ownership arise.

Questions? Give the loan professionals at Tripoint Mortgage Group a call today. We look forward to finding the perfect mortgage loan to fit your specific financial needs!