Closing on a purchase or refinance loan involves a number different services. The anticipated charges for these services initially appear on your Good Faith Estimate at the time you apply for your loan, and the actual charges appear on your HUD-1 settlement statement at closing. Here, Mark Wells at Preferred Financial Services, provides definitions of the fees you may encounter in the course of obtaining a loan:
Origination fee – this is the fee paid to the mortgage broker or banker as their compensation for carrying out the loan process for you
Discount points – these are additional amounts paid to either lower your interest rate permanently, or paid due to lower credit scores, to maintain the base interest rate
Appraisal Fee – the fee paid to a licensed appraiser to establish a market value of your home
Processing Fee – this is generally charged by the loan originator to cover his automated underwriting charges, deposit and employment verification charges, overnight shipping fees, and a host of small charges that accumulate to fulfill quality control expenses
Underwriting Fee – the fee charged by the lender on the loan to receipt in your loan package, verify that the loan meets standard guidelines, review your appraisal, prepare your closing documents, and ship them to your closing attorney
Escrow Deposits – these are the deposits for property taxes and homeowner’s insurance, paid into the lender’s escrow account, to be held for you until it is time for those bills to be paid.
Interim Interest – the interest paid on your new loan from the day it closes, to the end of the same month it is closing in. In paying this at closing, you will always skip the next month’s payment on your new loan.
Title Search – the fee paid to the attorney to verify that the title to the property you are buying or refinancing, is clear of any liens or encumbrances that might make your house unsellable
Title Binder – the fee paid to the attorney that temporarily insures the clear title on your property, until the permanent title insurance takes effect
Attorney fee – this is paid to the attorney for his time and services in closing your loan
Title Insurance – a one time insurance that comprehensively protects you for as long as you own your home, from any error or defect in title that might affect your ownership in the property
Recording fees – these are fees charged by the County to place your Deed and Mortgage into the permanent, public records at the courthouse
Stamps – these are taxes on any deed transfer (sale) of a piece of real estate. There are both county and state stamps on all real estate sales, and are typically paid by the seller of the property
For more information, contact Mark Wells or call 864-235-9596.
Copyright: Preferred Financial Services, Greenville, SC / NMLS #192279 / email: mark@thegreatestrates.com / phone: (864) 235-9596|Disclaimer|Terms & Conditions
