If you're shopping around for a lender, take a close look at this list and ensure you understand which fees are associated with each lender's offer, and, of course, the amount of each.
Closing costs may include the following items due, at least in part, at closing.
PMI (Private Mortgage Insurance) – if you need it, your first month's premium will be due at close
Homeowners' Insurance – most lenders require you pay 1/6 of the annual premium at close, to be placed in your escrow account
Flood insurance – same as homeowners' insurance, if it's required where you live
Lender fees (Note, these fees may not apply to all borrowers for all mortgages):
Discount points – sometimes packaged with getting a lower interest rate
Origination points – a mortgage broker fee
Application fees – fees associated with processing your loan request
Processing fee – covering gathering and submitting your loan application
Credit report fee – covering the cost of pulling your credit report
Appraisal fee – for the cost of an independent appraisal of your home
Survey fee – if a survey is required, there's a fee for that
Courier fee – sometimes included in the processing fee, it covers the cost of using couriers to deliver documents
Flood certification fee – covering the cost of determining if your home is located in a flood zone
Tax service fee – the cost of verifying proper crediting of your property tax payment
Administration fee – fees for underwriting and/or documentation preparation
Wire transfer fee – the cost of wiring funds to an escrow company
PMI application fee – if PMI is needed, this covers the fee for processing the paperwork
Commitment fee – to lock in a rate
Inspection fee – the cost to cover any inspection required
Title fees or attorney fees:
Recording/government filing fee – officially filing your property information at the local county courthouse; includes recording your ownership and transferring taxes and documents to your name.
Notary fee – a mortgage broker fee
Whether you're moving out of an apartment, a home you're selling or your parents' place, be sure to give yourself some overlap in case your closing date gets delayed.
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