LOAN FEES
Click here to download a closing cost worksheet. |
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| Lender Fees: |
For assisting you with obtaining a home loan, lenders/brokers charge different fees. Here are list of common lender fees. |
| Origination Fee: |
A fee charged by the lender/broker as compensation for assisting you with obtaining the loan. |
| Discount Fee ("Points"): |
Charge you can pay to buy down the interest rate on your loan. The more "points" you pay, the lower the interest rate on your loan. |
| Pre-Paid Interest: |
The lender will require interest to be paid for the number of days that you "use" your mortgage in a month. The amount of interest is typically determined from the date of funding to 30 days prior to the first payment. |
| Application Fee: |
Lender/Brokers may charge a fee to offset the cost of processing the loan. |
| Processing Fee: |
Lender/Brokers may charge a fee to offset the cost of processing the loan. |
| Lender Underwriting Fee: |
Fee charged by the lender/bank to review your loan application and associated documentation. During the underwriting process the lender determines if they are willing to lend you money. |
| Lender Administrative Fee: |
Bank fee to offset the cost of processing the loan. |
| Courier Fee: |
An optional fee to cover the cost of sending loan documents to different parties. |
| Wire Transfer Fee: |
Fee charged by the lender to provide your loan funds to the title officer for disbursement to various parties. |
| TITLE FEES: |
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| Title Insurance: |
This insurance guarantees the lender that the title company completed their title search correctly. The fee for title insurance is on a sliding scale based upon the property value. |
| Escrow/Settlement Fee: |
Fee charged by the title company to facilitate the financial and property transfers associated with the property and new loan. The charge is typically a flat fee. |
| Notary Fee: |
Charge for a licensed notary public to notarize the loan documents. |
| Miscellaneous Fees: |
There may be other fees such as document preparation, loan tie-in (if there will be a 1st and 2nd loans), etc. |
| GOVERNMENT FEES: |
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| Recording Fee: |
Once your transaction has closed, it is recorded with the appropriate county. The county charges a fee to record the mortgage or deed of trust. |
| Property Tax Proration: |
This tax rate is dependent on where the property is located. As a buyer, you will be responsible for the prorated amount based upon the date of acquisition.
Click here to download a tax proration chart. |
| City/County Transfer Tax: |
Click here to download a chart of transfer tax rates for Bay Area communities. |
| THIRD PARTY FEES: |
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| Appraisal Fee: |
Lender’s require an appraiser to determine the home’s fair market value. |
| Credit Report Fee: |
Charge for the lender/broker to obtain a credit report. |
| Tax Service Fee: |
A tax service fee is paid to an outside source that monitors your tax account. |
| Flood Certification Fee: |
A flood certification determines if the property is located in a flood zone. If your property is located in a flood zone, you will be required to obtain flood insurance by the lender. |
| Hazard/Fire Insurance (for the first year): |
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it. It is required by the lender |
