Explanation of Closing Costs

  • Application Fee: Covers the cost of application and the appraisal (nonrefundable).
     
  • Attorney Fee: Preparation of the paperwork. by our closing attorney.
     
  • Completion Inspection Fee: Fee charged if the bank has to return to the property after the appraiser has been there to re-inspect.
     
  • MGIC: A company which writes insurance that protects the mortgage lender against loss in the event of borrower default. Private mortgage insurance is required if the loan-to-value (LTV) ratio is more than 80%.
     
  • Municipal Lien Certificate: Provides amount of real estate taxes that are owed on the property.
     
  • Points: Origination fee; represents one percent of the mortgage amount.
     
  • Recording Fee: Fee to record required documents such as the mortgage and deed.
     
  • Tape Survey: Shows the meets and bounds of the property; how the foundation sits on the property; if the property conforms to local zoning laws; and if the property is located in a flood zone.
     
  • Title Fee: Actual title search; insures that the title is free and clear of all encumbrances.
     
  • Title Insurance: Protection against possible title defects that could result in claims against your property.
     
  • Tax Related Service Fee: A one time fee for the purpose of monitoring real estate tax payments.
     
  • Flood Certification Fee: Life of loan certification to monitor changes in flood maps.

Remember: No required escrowing for Real Estate taxes and homeowners insurance means less money needed at loan closing for reserves.

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