Closings and Closing Costs
Closings can very widely from location to location in all fifty states. Some of the variables are state, county and local taxes, recording fees, appraisals, etc. We may not know all the possibilities. We always will make our best attempt to do a Good Faith Estimate that includes items that maybe at closing. Please use our Pre Qualify to determine a rough estimate as to what your closing cost might be. The following are a list of those cost the you will usually have at closing. This is not a comprehensive list and may not cover all items you will be required to pay at closing.
Note: The Credit report and Appraisal Fees are collected up front as these fees are paid to the providers no matter whether the loan closes or not.
As Shown on the Settlement/Closing Statement (HUD-1):
Loan Costs:
Line Number:
801/802 Origination and Discount Points: Depending on the interest rate you select it may require points (origination and Discount). A point is 1% of the loan amount.
803 Credit Report: $37.50
804 Appraisals: This will very from location to location and the types of properties. Home appraisal usually start at $300.00
805 Lender's Inspection Fee: For final inspection of new construction homes or work done on a home that is included in new loan. Starts from $100.00 per inspection.
811 Mortgage Broker Compensation/Yield Spread Premium: Fees paid to Broker from Lender of record. These fees are not paid by Borrower or seller. Does not effect the bottom line at closing.
1108 Tile Insurance: This verifies from location to location. Required for every loan.
1201 Recording Fees: Fees that are require to record the note and mortgage - varies from location to location.
808 Tax Service Fee: Required for every loan - $68.00
1203 State Taxes: Varies from location to location.
1301 Survey: Varies from location to location - usually start at $150.00
1302 Termite Inspection: Required on all purchase loans. Cost start at $35.00
1101 Closing/Disbursement Fees: Start at $150.00 - will very from location to location.
809 Underwriting/Administration fee: $275.00
813 Processing/Doc Prep Fee: $300.00/$175.00
810 Flood Certification Fee: $20.00
1305 Redraw Fee: Only required if the closing documents are redrawn. $75.00
Cash Out Fee: Required by Fannie Mae/Freddie Mac - .50 point for loans to 80%LTV (loan to value) or .75 point for loans up to 90% LTV of the loan amount.
1306Waive Escrow fee: Required by Fannie Mae/Freddie Mac - .25 point of the loan amount and only if your you have a 80% LTV (loan to value) or less.
Pre Paid and Reserves:
901Fractional Interest: Interest that is required to be paid at closing to cover interest from the date of closing to when first borrower required monthly payment is due.
1001-11 This is for the collection of Real Estate Taxes, Home Insurance and Private Mortgage Insurance (PMI) if required by Fannie Mae/Freddie Mac along with a 2 month reserve for each. Real Estate Taxes, PMI, Hazard Insurance: Required by Fannie Mae/Freddie Mac if loan to value is above 80% LTV. Otherwise Borrow can elect to waive escrows (borrower pays the items when they come due). See Waive Escrow fee above.
Credits At Closing:
201 Ernest Money Deposit
205 Other Financing (i.e. second mortgage)
803/804 Application Fee: Credit Report and Appraisal - paid outside of closing (POC).
112 Closing Cost Paid by Seller: Amounts agreed to in the purchase contract and that are acceptable by Fannie Mae/Freddy Mac.
If you have any questions as to any of the listed items or how they may or may not apply to you please email us or call us.