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; ensures 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.