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There are 2 broad categories of extra charges and fees that
are typically found in settlement or closing transactions
nationwide:
- Charges for Establishment and transfer of title. May be referred to as the title search, title insurance, legal fees and settlement supervision fees.
- Costs associated with obtaining the mortgage. These costs include surveys, appraisals, credit checks, loan documentation fees, notary charges, loan origination fees, commitment fees, processing fees, hazard insurance, interest prepayments, Lender's inspection fees and underwriting fees.
Although fees may vary from one financial institution or
another, below is a list of fees related to mortgage costs:
- Loan Application Fee - This fee covers the initial costs of processing your loan request, checking your credit history and preparing the loan documents. In many cases, this fee is not refundable even if the loan is not granted. Be sure to ask.
- Property Appraisal Fees - All Lenders require an appraisal, usually by an independent appraiser, of the market value of the home being purchased. This opinion gives the Lender some confidence that if the Borrower defaults, the Lender can recover its loan money from the sale of the home after foreclosure.
- Loan Origination Fees - (1% to 3% of the loan amount) - Also referred to as "points". Each point equals 1% of the mortgage amount; they represent the equivalent of prepaid interest.
- Mortgage Insurance - (.5% to 2% of the loan amount) - The Lender may require you to purchase mortgage insurance as a condition of granting the loan. The most common reason for this insurance is because the Borrower's down payment is less than the Lender's normal minimum (usually at least 20%). Mortgage Insurance protects the Lender from loss if the Borrower defaults. (This insurance does not protect the Borrower, but it may allow the Borrower to get a loan for which he/she might otherwise not get.) For a typical 90% loan, you are charged an annual fee of .5% to 2% of the loan amount.
- Home Owners Hazard Insurance - ($180 to $400 a year) - You will be required to have a policy in effect at closing with the first year's premium paid in full. This insurance is protection against physical damage to the house by fire, wind, vandalism and other causes. (Minimum coverage is to be no less than the mortgage amount.)
- Survey - ($125 to $300) - A verification from a
surveying firm will assure you that the lot containing the
house that you are buying has not been encroached upon by
any other structures since the last full-fledged survey
was conducted. On occasion, a complete survey is required
to ensure that the house and other structures are legally
where you and the Seller say they are. (Buyer or Seller
may be responsible for the cost of the survey, depending
on area.)
| Closing Fees |
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| Mortgage/Buyer Closing Fee |
$250 |
| Real Estate/Seller Closing Fee |
$250 |
| Commercial Closing Fee |
Call for quote |
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| Title Examination |
$130 |
| Abstract Update |
$150+ |
| RPA Title Search |
$100+ |
| Plat Drawing |
$60 |
| Assessment Fee |
$35 |
| Name Search |
$20 |
| Courier Fee/Package Shipping |
$25 |
| Payoff Courier Fee |
$25 |
| Recording Service Fee/Document |
$20 |
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| For Title Insurance pricing please see our
rate chart |
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| If Custom Title Services, LLC, will be closing
both sides, the Seller's Closing Fee is reduced to $150. |
| Our rates are very competitive and our Title Insurance Premiums are among the lowest in the industry. |
| Our closers are prepared to travel for your closings. |
| A reissue credit will apply on a Refi when a prior mortgage is being paid off. |
| Fees subject to change without notice. |
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