Loan-Related Closing Costs

Loan Origination Fee

This is the fee for originating your loan. It is usually 1% of the loan amount, but could vary.

Broker Fee                                                                                              

This fee may not always be charged and it is the fee which the mortgage broker is paid for handling the loan.  There are costs to the broker associated with having access to hundreds of loan programs and lenders and this fee is sometimes passed on to the borrower.

Processing Fee                                                                                                                 

The loan processor plays a crucial part in closing your loan and charges a fee for her services. 

Points (optional)
An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $150,000 loan, 1 point would equal $1,500.

Underwriting or Lender Fee                                                                              

 This is the fee the actual lender charges to underwrite, draw docs, and fund the loan.

Appraisal Fee
The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted.

Credit Report
The lender uses a credit report to determine the creditworthiness of the loan applicant. I do not charge my borrowers to pull their credit.  The only time you will see credit fees on your good faith estimate from me is if I had to correct something on your credit report or do a rescore, in which case the credit agency I use charged me.

Title Fees                                                                                                  

These fees include title insurance, wire fees, document preparation and escrow fees.

Interest Payment
Typically the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15, your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required.

Escrow Account
At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account.