There are a variety of fees incurred when buying a property. These are typically referred to as closing costs, but there are actually different types of charges that fall into that category. This article provides an explanation of lender closing fees in Bennington.
Lender Closing Fees
Points are a way for borrowers to get a reduced interest rate. It involves buying down the rate to reduce actual payments for the life of the mortgage. This option may be important for buyers who require a smaller payment to qualify.
Origination fees vary from company to company. It usually covers the mortgage company processing of the loan.
An appraisal is required by a lender but performed by an independent professional. Appraisals verify the market value of a property and its condition. A mortgage will not obtain final approval until an appraisal is submitted, reviewed, and approved
Property Tax Services
Property taxes are typically part of your recurring mortgage payment. The mortgage company receives a specific amount from homeowners on a monthly basis and deposits it into an escrow account. When the tax bill is payable, payment is made from the escrow account. Many lenders will charge a one-time fee for this service.
Real estate located within a flood zone must have flood insurance. Mortgage companies order a flood certificate to identify flood zone status. Flood certificates are always the financial responsibility of the home owner.
Credit reports are used to assess credit worthiness and calculate mortgage rates. There is an expense for requesting credit scores from the 3 major credit bureaus. Mortgage companies will frequently pass on this expense to home buyers.
Other Lender Closing Fees
The lender closing fees discussed in this blog are merely the most common of the fees that may be billed by your financing company. For a complete list of potential expenses that you will incur, or for assistance with other real estate or mortgage matters, contact Troy Richardson at Maple Leaf Realty by calling 802-447-3210 or emailing firstname.lastname@example.org.