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Buyer's Closing Costs

Mortgage Origination
A one time set up charged by the lender, usually 1 percent of the mortgage amount.

Mortgage Discount Points
A commission paid for arranging the loan.

Pro-rated Mortgage Interest
Money charged for the use of the principle at closing to cover the period from the date of closing to the first day of the following month. (First payment is second month after closing and interest is applied to first month after closing and is one month in arrears thereafter.)

Appraisal Fee
Fee payable to appraiser for a written report containing the appraiser's opinion as to the value of a property and the reason leading to the opinion.

Credit Report Fee
Fee payable for a report on the past ability of a loan applicant to pay installment payments.

Escrow Fee
Escrow Company service for facilitating the transfer of property by following the written instructions of the parties, holding funds and documents on their behalf, and disbursing the funds and documents once all of the conditions have been satisfied and title transferred.

Survey Fee
The fee charged by a Registered Surveyor, at the instance of a lender, to perform a site inspection of the property, to measure the lot and determine if the improvements are within the bounds of the lot. (not a boundary survey)

Document Preparation
Lender fee for preparing the Mortgage Deed and other related mortgage loan documents.

Special Tax Fee
Lender directed service fee for title company's search of local City Ordinances to ascertain if there any pending laws for assessments that have yet not been certified to the county Auditor. FHA and VA prohibit a purchaser from paying this fee.

Conditional Filling Fee
Title Company service fee for work preformed at title transfer to ensure that all conditions of the parties, including the lender, have been satisfied. FHA and VA prohibit a purchaser from paying this fee.

Commitment to Insure
Fee for the insurance for the written "binder" of title insurance that sets forth the proposed transaction, ownership information, requirements for coverage and exceptions to title.

Assignments
Lender fee for recreation of Assignments of the Mortgage when the mortgage has been sold to an investor or will be sold to an investor in the future.

Tax and/or Insurance Reserves
1/12 of yearly real estate taxes and/or hazard insurance premium times the number of months in the period of between the first mortgage payment and the next tax or insurance date.

P.M.I. Reserves and One Time
Private Mortgage Insurance, 1/12 of total yearly premium times the number of months in the period between the first payment and the next installment due, collected from the buyer at closing plus the reserves.

Insurance Premium One Year
First year homeowner insurance premium due at time of closing.

Owner's/ALTRA Policy Premium
Title insurcance Premium for insurance protecting a new owner or Mortgage Lender against loss arising from past occurrences, such as missing heirs, forgery and fraud.


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