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.

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