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Application Fee: Paid to the lender at the time of application for approval. Covers credit report, possibly appraisal fees of the lender.
Home Inspection Fee: Paid within a few days of signing to purhcase a home. Paid at the time of the inspection, which buyers should attend with their chosen inspector. Inspector surveys the home for any code violations, mechanical or structural problems. Most cosmetic issues are not reported unless they are hazardous to your health.
Points: Paid to the lender at closing to reduce the interest rate on a mortgage, usually in a range of .5 to .3 points (%) of the mortgage.
Escrow Fees: Paid to the lender at closing for pre-paid real estate taxes, flood and/or hazard insurance premiums for 2 or 3 months.Insurance may be an option and paid to a private vendor with proof of coverage at closing.
Flood Certification Fee: Paid to the lender at closing to verify that status of your purchase, relative to local flood zones.
Document Preparation Fee: Paid to the lender at closing to process paperwork relative to the mortgage.
Lender's Attorney's Fee: In some transactions, the lender requires the buyer to use and pay for the lender's attorney to review the legal aspects of the transaction for the lender. PMI (Private Mortgage Insurance): Paid at closing when the mortgage exceeds 80% of the purchase price. The lender sees this as extra liability on their part for lending the money and therefore charge a premium to lend more than that amount.
Home Owners (Hazard) Insurance: Policy must be in force at closing, covering at least the total mortgage, declaring lender the payee.
Title Search Fee: Paid at closing to review the title for problems, liens, etc.
Title Insurance: Paid at closing by the buyer to protect the buyer and lender from any future, unexpected title claims against the property. The owner's title coverage is optional and is highly recommended for all buyers in all situations. This can usually only be bought in the first 45 days after closing.
Legal Fees: Paid at closing by the buyer for processing documents, filing local and state recording fees, and miscellaneous costs, etc.
Recording Fees:Paid at closing as required by local and state government to record the transaction.
**Closing costs vary per individual based on personalized situations & credit scores. The above may vary depending on your situation and may include all or part of the above fees. Additional fees may be added depending on your lender.
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