1. Credit Report Fees. This is only the cost of getting the official report on your credit standing. You’ll usually pay for the loan issuer’s copy of your credit report, but you be wise to get copies for yourself before you even begin looking around for the best deal on a mortgage. Go to www.annualcreditreport.com you can request copies from all three major credit companies and then carefully examine them for inaccuracies. Should you come upon discrepancies, clear them up before you apply for a loan.
2. Appraisal Fee. This charge pays the non-affiliated evaluator who supplies a price for the home.
3. Application Fee. You remit this fee to your mortgage firm lender to process your loan request. This charge frequently also covers the credit report fee as well as the appraisal charges.
4. Lock-in Fee. In case you locate a lower interest rate and wish to lock it in during the time the the mortgage bank appraises your loan request, you have the option to pay this fee to have the lender lock that rate on your behalf for a specific amount of time.
5. Loan origination fees. This fee covers the processing of the house mortgage and is typically negotiable.
6. Pre-paid Interest. This amount comprises the sum of interest which accumulates in the interval between the closure of the loan and the beginning of the subsequent month. The later in the calendar month you close the loan, the lower this amount will be.
7. Points. Also referred to as `discount points`, these are 1 % increments of the whole on line mortgage. You may have to pay these points as part of the mortgage loans contract or alternately elect to pay points to reduce the rate of interest.
8. Attorney Fees. You might wish to enlist a legal counselor’s services. Before working with your legal representative, get a quote of his or her fees to look over the contract, negotiate with the loan issuer, as well as manage the loan settlement.
9. Settlement/ Closing costs. Most costs cataloged here, which include the fee to process your loan application and other charges mentioned above, are included in the settlement costs. In addition, the fees for preparing the title documentation after verifying it, wire transfer costs, and fees for recording a home sale with the local authorities are among the other closing costs you should be prepared to pay. Closing charges are most often 2 – 6 percent of the purchase price of the residential property.
