Closing Cost
Items Payable in Connection with Loan: These are the fees that lenders charge to
process, approve and make the mortgage loan:
Loan Origination Fee - Fee the lender charges to process the loan
Loan Discount - A loan discount is a one-time charge imposed by the lender or broker to lower the rate.
Appraisal Fee – This charge pays for an appraisal report made by an appraisal. This fee is usually
collected at loan application and is non-refundable.
Credit Report Fee - This fee covers the cost of a credit report, which shows the credit history. The lender
uses the information in a credit report to help decide whether or not to approve the loan and how much
money to lend.
Processing Fee - Charged for processing and preparation of the credit documents.
Commitment Fee - Collected to lock in the borrower's interest rate. Non-refundable if the loan does not
close.
Wire Transfer Fee - Charge for having funds wired or electronically transferred, about $25.
Items Required by Lender to be Paid in Advance:
Interest - Lenders usually require borrowers to pay the interest that accrues from the date of settlement to
the first monthly payment.
Mortgage Insurance – Some first-time home buyer programs still require the first year mortgage
insurance premium to be paid in advance. Most mortgage insurance (when required) is simply paid
monthly along with your mortgage payment. Mortgage insurance covers the lender and covers a portion of
the losses in those cases where borrowers default on their loans.
Homeowner’s (Hazard) Insurance – This is the insurance you pay to cover possible damages to your
home and other items. If you buy a home, you will normally pay the first year’s insurance when you close
the transaction. If you are buying a condominium, your Homeowners’ Association Fees normally cover this
insurance.
Flood Insurance - If your house located in the Flood Zone
Escrow Account Deposits: These lines identify the payment of taxes and/or
insurance and other items that must be made at settlement to set up an escrow account.
Hazard Insurance - # of month
Mortgage insurance - 2 - 3 month
City property taxes - 2 - 3 month
Title Charges - consist of a variety of services performed by title companies and others:
Settlement or Closing Fee: this fee is paid to the settlement agent or escrow holder
Tax Service Fee – During the life of your loan you will be making property tax payments, either on your own
or through your impound account with the lender. Since property tax liens can sometimes take
precedence over a first mortgage, it is in your lender’s interest to pay an independent service to monitor
property tax payments.
Notary Fees – Most sets of loan documents have two or three forms that must be notarized. Usually your
settlement or escrow agent will arrange for you to sign these forms at their office.
Flood Certification Fee – If property is located in a federally designated flood zone. This is a fee usually
charged by an independent service to make that determination.
Abstract of Title Search, Title Examination, Title Insurance Binder
Attorney's Fee - Legal Service provided by the lender
Title Insurance – Title Insurance assures the homeowner that they have clear title to the property. The
lender also requires it to insure that their new mortgage loan will be in first position. The costs vary
depending on whether you are purchasing a home or refinancing a home.
Government Recording and Transfer Charges: These fees may be paid by you or
by the seller, depending upon your agreement of sale with the seller
Recording Fees: Deed, Mortgage
City/County tax/stamps -
State Tax/Stamps
Additional Settlement Charges:
Survey - The lender may require that a surveyor conduct a property survey.
Items Payable in Connection with Loan: These are the fees that lenders charge to
process, approve and make the mortgage loan:
Loan Origination Fee - Fee the lender charges to process the loan
Loan Discount - A loan discount is a one-time charge imposed by the lender or broker to lower the rate.
Appraisal Fee – This charge pays for an appraisal report made by an appraisal. This fee is usually
collected at loan application and is non-refundable.
Credit Report Fee - This fee covers the cost of a credit report, which shows the credit history. The lender
uses the information in a credit report to help decide whether or not to approve the loan and how much
money to lend.
Processing Fee - Charged for processing and preparation of the credit documents.
Commitment Fee - Collected to lock in the borrower's interest rate. Non-refundable if the loan does not
close.
Wire Transfer Fee - Charge for having funds wired or electronically transferred, about $25.
Items Required by Lender to be Paid in Advance:
Interest - Lenders usually require borrowers to pay the interest that accrues from the date of settlement to
the first monthly payment.
Mortgage Insurance – Some first-time home buyer programs still require the first year mortgage
insurance premium to be paid in advance. Most mortgage insurance (when required) is simply paid
monthly along with your mortgage payment. Mortgage insurance covers the lender and covers a portion of
the losses in those cases where borrowers default on their loans.
Homeowner’s (Hazard) Insurance – This is the insurance you pay to cover possible damages to your
home and other items. If you buy a home, you will normally pay the first year’s insurance when you close
the transaction. If you are buying a condominium, your Homeowners’ Association Fees normally cover this
insurance.
Flood Insurance - If your house located in the Flood Zone
Escrow Account Deposits: These lines identify the payment of taxes and/or
insurance and other items that must be made at settlement to set up an escrow account.
Hazard Insurance - # of month
Mortgage insurance - 2 - 3 month
City property taxes - 2 - 3 month
Title Charges - consist of a variety of services performed by title companies and others:
Settlement or Closing Fee: this fee is paid to the settlement agent or escrow holder
Tax Service Fee – During the life of your loan you will be making property tax payments, either on your own
or through your impound account with the lender. Since property tax liens can sometimes take
precedence over a first mortgage, it is in your lender’s interest to pay an independent service to monitor
property tax payments.
Notary Fees – Most sets of loan documents have two or three forms that must be notarized. Usually your
settlement or escrow agent will arrange for you to sign these forms at their office.
Flood Certification Fee – If property is located in a federally designated flood zone. This is a fee usually
charged by an independent service to make that determination.
Abstract of Title Search, Title Examination, Title Insurance Binder
Attorney's Fee - Legal Service provided by the lender
Title Insurance – Title Insurance assures the homeowner that they have clear title to the property. The
lender also requires it to insure that their new mortgage loan will be in first position. The costs vary
depending on whether you are purchasing a home or refinancing a home.
Government Recording and Transfer Charges: These fees may be paid by you or
by the seller, depending upon your agreement of sale with the seller
Recording Fees: Deed, Mortgage
City/County tax/stamps -
State Tax/Stamps
Additional Settlement Charges:
Survey - The lender may require that a surveyor conduct a property survey.
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Closing Cost
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