What are “Closing Costs” 

Closing costs are the one-time fees paid at the loan closing for costs associated with purchasing or refinancing a home. The Loan Estimate or LE, that we will provide to you summarizes all fees associated with obtaining your mortgage. These fees are also listed on the “Fee Sheet” we provide to all our clients.

When all costs are finalized, they will listed on the Closing Disclosure or CD settlement statement prepared by your attorney to be signed by all parties at the loan closing. On the CD each fee has a specific line item number indicating the purpose, the amount, who pays it and to whom. Sellers and buyers almost always split these costs, as the sales contract specifies.

Closing cost fees consist of:

Fees charged by the lender

  • Loan origination fee
  • Loan discount fee
  • Appraisal fee
  • Credit report fee
  • Lender application fee
  • Lender processing fee
  • Lender underwriting fee
  • Tax service Fee
  •  Flood report fee

Fees paid to the attorney or title company

  • Attorney fee
  • Lender’s title insurance fee
  • Owner’s title insurance fee
  • Title search fee
  • Title binder fee
  • Title clearance fee
  • Closing protection letter fee
  • Copies/fax fee
  • Courier/wire fee
  • Doc preparation fee (normally paid by seller for new deed)

Fees paid to government agencies

  • Government recording charges
  • Deed transfer taxes and stamps (in SC, normally paid by seller)

Fees paid to third parties for services provided, services you can shop for

  • Home inspection
  • Termite inspection
  • Survey
  • Radon inspection
  • HVAC inspection
  • HOA transfer fee
  • Wells or septic inspection
  • Home warranty

Remember, closing costs are not the only fees you will be required to pay at closing. Fees for items required by the lender to be paid in advance or prepaids are also due at closing.

At First Nations Home Mortgage we answer questions about closing costs every day. Consultations are always free! Call today to learn more.