When you obtain a loan for a real estate purchase, you will be faced with a variety of charges associated with the loan. These are normally referred to as closing costs, but there are actually varying types of fees. This article covers common lender closing charges in Florida.
Lender Closing Charges
Points
Points are a method for buyers to obtain a lower mortgage rate. It entails buying down the rate to lower payments for the length of the mortgage. This option may be useful for homeowners who need a smaller payment in order to secure approval.
Origination Fee
Origination fees are lender specific. It usually covers the lender processing of the mortgage.
Appraisal Fee
An appraisal is required by a lender but completed by an appraiser. Appraisals confirm the market value of a home and its condition. A mortgage will not be given approval without a acceptable appraisal
Tax Service Fees
Real estate taxes are typically part of your recurring mortgage payment. The lender receives a specific amount from homeowners with each mortgage payment and places those funds in an escrow account. When the tax is due, the applicable amount is withdrawn from that escrow account. Many mortgage companies will require a one-time fee to set up this tax service.
Flood Certification
Homes in flood zones will require flood insurance. Lenders order a flood certificate to identify flood zone status. Flood certificates are historically charged to the borrower.
Credit Report
Credit reports are how lenders assess credit worthiness and calculate mortgage rates. There is a cost for pulling credit ratings from the 3 major credit bureaus. Mortgage companies will generally pass on this fee to home buyers.
Additional Lender Closing Charges
The lender closing charges discussed in this blog are only sampling of the fees that can be imposed by your mortgage company. For a comprehensive list of possible expenses that you may be responsible for, or for help with other home buying or financing questions, contact Sonny Solomon at The Keyes Company by calling 561-247-1047 or emailing sonny@sonnysolomon.com.
