OUR CLIENTS SAY...



Estimated Settlement Costs  
Category: Buyers, Financial Process

 

What Will It Cost?

To acquire a loan/mortgage on a property you will incur some non-refundable costs.  These costs vary according to the loan company and the type of loan you choose.  Some closing costs are negotiable, while some are set by law, depending on the loan.

 

I will be able to give you a list of “Estimated Closing Costs” according to your financing terms and loan type.  The mortgage company will give you a “Good Faith Estimate” of your projected closing costs and buyer’s charges designated by the contract when you make a loan application.

 

 

 

Estimated Closing Costs:

 

Loan Origination Fee

This fee covers the lender’s administrative costs in processing the loan.  This is a contract designated buyer’s charge.  It is usually 1 percent of loan amount.

 

Loan Discount

Often called “points,” a loan discount is a one time charge used to adjust the yield on the loan to what market conditions demand.  Each “point” is equal to 1 percent of loan amount.  This is a contract designated buyer’s charge.

 

Appraisal Fee

This pays for a statement of property value for the lender, made by an independent appraiser.  The charge is approximately $350-$450.  THIS WILL BE COLLECTED AT THE TIME OF LOAN APPLICATION.  This is a contract designated buyer’s charge.

 

Credit Report

This fee covers the cost of the credit report for the lender.  It is a contract designated buyer’s charge of approximately $55-$75.  THIS WILL BE COLLECTED AT THE TIME OF LOAN APPLICATION.

 

Survey

This fee covers the cost of a survey plat of the property.  It is a contract option: a  buyer’s or seller’s charge of approximately $350.

 

Owner’s Title Insurance Policy or

The title policy is issued by the Abstract Company to insure the clear title on the property.  This is a contract option:  abuyer’sseller’s charge.  The fee is set by the Insurance Board and is based on the sales price.

 

 Mortgagee Title Policy

The abstract company issues the Mortgagee’s Title Policy to the lender to cover losses due to problems not identified by the title search.  This is a contract designated buyer’s charge of approximately $185.

 

Tax Service Fee

A lender fee to a service company to research and guarantee current status of taxes.  It is a contract designated buyer’s charge (except on an FHA loan) of approximately $110-$200.

 

Underwriters Fee

A lender fee to the investors to underwrite the loan.  It is a contract designated buyer’s charge (except on an FHA loan) of approximately $150-$185.

 

Attorney Fee

For preparation of legal documents such as the Warranty Deed, Deed of Trust and Deed of Trust Note.  This is charged to both buyers and sellers for legal papers drawn;  approximately $175 each.

 

Recording Fee

The abstract company will record all legal documents pertaining to the transaction.  This is charged to both buyer and seller for recording documents, it varies according to the number of documents recorded;  approximately $25 apiece.

 

Tax Certificates

This is a contract designated seller’s charge of approximately $30.

 

Escrow Fee

An abstract company charge for funding and disbursements.  One half is charged to both buyer and seller of approximately $100.

 

Courier Fee

This fee is charged to buyer (except on an FHA loan) of approximately $60-$100 each.

 

Flood Certification

This is a lender requirement to verify whether or not the property is in the flood zone of approximately $35-$50.

 

 

 

These closing costs will vary depending on the loan company, type of loan, contract negotiations, and closing companies.  Other miscellaneous lender charges could include an application, processing, settlement, or closing fee.

 

Closing costs are explained in the HUD guide to Settlement Costs that your loan company will provide.


Go Back

 
 
Bookmark This Page Print This Page

Susan Palmer
Legacy Real Estate
4400 North Big Spring, Suite 101
Midland, Texas 79705
432/687-6500 Main
432/978-7816 Cell
432/687-6513 Fax

spalmerreal@yahoo.com

The finest compliment we can receive is a referral from you.

 

Copyright Susan Palmer. All rights reserved. Web Design by Sizzling Studios.