Closing Costs
Compare closing costs between lenders before you make a full application. While a mortgage interest rate is certainly important, you must be sure the lender will not charge excessive closing costs to secure a desired rate. A Good Faith Estimate of Closing Costs is the document which will allow this closing costs comparison. The Good Faith Estimate of Closing Costs details interest rates, terms, and the closing costs of the transaction. You will always receive a Good Faith Estimate of Closig Costs from me before you make a full application and I urge you to insist on a closing costs estimate from any lender or broker you consider. Go here for information on a no closing costs refinance.
Closing costs fall into several categories-
Lender Closing Costs which can vary by lender
Settlement attorney fees
Government fees and taxes
Lender closing costs
Please understand that I am a mortgage broker with access to over 700 lenders, each with their own fee and closing costs schedule. Fees below are representative of average closing costs charged by various lenders we represent. The only closing costs I charge and keep are a $395 processing fee and a $395 Broker fee. Everything else is a direct pass through from various service providers associated with the transaction. They are passed to you based strictly on our cost.
| Origination fees or closing costs | I do not charge origination fees to offer lower closing costs | $ 0 |
| Discount points | Prepaid interest to lower your interest rate | Varies by rate |
| Application fees | I do not charge an application fee | $ 0 |
| Lock in fees | I do not charge for locks under 60 days | $ 0 |
| Underwriting/Doc prep | Fees to cover Lender office costs | $400-$500 |
| Flood Certification | Verify that the property is not in a flood plain | $19 |
| Tax Service | Paid to process property tax payments | $75 |
| Appraisal | Verify property value | $300-400 |
| Credit Report | Fees Paid to verify your credit profile | $15 |
Settlement Attorney closing costs
| Attorney fees | Paid for document prep and closing services | $225-$400 |
| Title Search | Cost to verify chain of title | $85- $200 |
| Title insurance | Required by lender to insure the chain of title | $3.90/$1000 of value |
Government fees and taxes
| Recordation Fees | Government fees charged to record a new deed | $50- $200 |
| State Transfer Tax | The required state taxes | Varies by State |
| County Transfer Tax | The required county taxes | Varies by County |
Please note that the above are for information purposes only. Some programs require additional fees.
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Request a Good Faith Estimate of Closing Costs before you apply
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Bob Gammache, CMPS
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