Title Fees
charges for preparing and recording
legal documents, searching the title,
and any other services performed to
protect the lender's interest.
Origination Fee
lender's charge to make the loan.
Appraisal Fee
charge by the lender for an inspection
of the property to determine its value.
Inspection Fees
cost of any other inspections required
by local housing codes, government
agencies, or individual lenders, such as
termite or lead paint inspections (if
you have not already paid for them
yourself).
Mortgage Insurance
fee to the company or government agency
which insures the loan in case you fail
to make your payments.
Credit Report
all lenders require a credit history of
the buyer. This may be included in the
application fee.
Application Fee
the charge by the lender for processing
your loan application.
Survey Fee
the lender may require a registered
survey or a map showing the location of
the house and the boundaries of the
property.
Recording Fee
courthouse gets this fee for recording
mortgage instrument.
Pre-Paids Include…
Real Estate Taxes
These are paid in advance and held in a
special impound or escrow account by the
lender. These might include a special
assessment for new sidewalks or sewer
improvements.
Home Insurance and
premiums paid several months in advance
and Mortgage Insurance also held by the
lender.
Interest Charges
from the date of closing to the date of
your first mortgage payment.
What Happens At The Closing?
The lender's agent will ask for your
paid insurance policy (or binder) on the
house.
The agent will list the adjustments
(what you owe the seller: remainder of
the down payment, pre-paid taxes, etc.,
and what the seller owes you. i.e.
unpaid taxes, pre-paid rents, etc.
You will sign the mortgage or deed of
trust (the legal document giving the
lender the right to take back your
property if you fail to make your
mortgage payments).
You will also sign the mortgage note
(the promise to repay the loan in
regular monthly payments of a certain
amount.).
You will then be "loaned" the money to
pay the seller for the house.
The Title (proof of ownership of the
property) passes from the seller to you,
usually in the form of a deed (the
document that transfers the title)
signed by the seller.
The lender's agent will collect the
"closing costs" from you, and give you a
HUD Statement (a list of all the items
you have paid for). Be sure to keep
this. You will need it for tax purposes.
The deed and mortgage will then be
recorded (put on file) at the County
Court House.
