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NMLS: 253889 - DRE: 01450808
5 Types of fees you must pay when you pay closing costs
5 Types of fees you must pay when you pay closing costs
When you buy or refinance a home, you will need to budget for closing costs. Mortgage closing costs are fees and expenses you pay when you secure a loan for your home, beyond the down payment. These costs are generally 3 to 5 percent of the loan amount.
Understanding what closing costs cover and budgeting for them will smooth out the final stretch of the home-buying process. Here is a quick look at the different types of closing costs:
Lender fees:
On your loan estimate, you will find a section of lender fees.
Origination fees
Discount Points
Underwriting fees
Processing fees
Loan commitment
Rate lock fee
Application fee
Float down
Miscellaneous fees:
Appraisal
Home Warranty
Flood certificate
Notary
Wire
Recording
Home inspection
Credit report
Termite inspection
Endorsement
Sub-escrow
HOA questionnaire
Upfront MI (FHA loans)
VA funding fee (VA loans)
Title insurance fees:
Protects you against previous owners' debt and others' claims of ownership before buying the home.
The owner's policy: Paid for by the seller.
The lender's policy: Paid for by the buyer.
Escrow fees:
An escrow fee is paid to the title, escrow company, or attorney for conducting the closing of a real estate transaction.
Check out here how much the escrow fee cost!
Pre-paid fees:
Hazard insurance
Property tax
Interest
If you want to know more about closing costs , you know you can call me, I will make it simple and safe!
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