Charges and Fees. The charges listed below are charges that may or may not be charged to you by the lender. You will be receiving a “Good Faith Estimate” which outlines certain charges we anticipate you will pay in connection with your mortgage loan. This document is an estimate only; you may incur additional charges as a result of your transaction. Many of the charges are due at the time of closing however, we may require the payment of some of the fees or charges prior to closing. These fees are explained below:
Application Fee: This fee is payable at application and covers the cost associated with the processing of your loan amount. The application fee may not cover all with the processing of your loan; additional fees will be assessed either at the time of third party billing or at closing.
Appraisal Fee: This fee is charged in connection with obtaining an appraisal completed by an approved appraiser to determine the value of the property for lending purposes. The fee for the appraisal will vary due to: property type, number of units, occupancy status, condition of the property, and property location. The additional cost over and above the initial fee collected at application will be due at the time of closing.
Credit Report: This charge covers the cost of a standard factual credit report from a “consumer reporting agency” which will enable the lender to determine your credit standing and history. Additional fees for credit reports will be charged for the following: updates and supplements to the credit report, business credit reports, credit run under maiden and alias names and foreign credit reports. These fees will be due and payable at the time of request or at closing upon lender’s discretion.
Commitment Fee/ Origination Fee: This fee is charged by the lender as consideration for binding the lender to make a loan in accordance with the terms and conditions of its commitment. This fee may be charged as a percentage of the loan amount and is payable at the time of receipt of commitment by applicants.
Document Prep Fee: This fee is charged by the lender for preparing all closing documents, including the note and mortgage.
Lock-In Fee: In the event you select a program with a lock-in feature you may be asked to provide a lock-in fee to guarantee your interest rate and/or discount points for a period of time based on conditions specified in the lock-in agreement.
Loan Discount Points: “Points” may be charged in connection with your loan’s interest rate, term and length of lock period. Points are a percentage of your loan amount.
Tax Service Fee: This fee will be collected at closing and is the requirement of your loan servicer. The service provided monitors collection, payment and receipt of the tax and insurance payments. I is mandatory for all borrowers whether their tax and/or insurance premiums are escrowed or not to receive the service.
Third Party Charges: Specific charges paid or incurred by the lender which must be reimbursed. These charges may be paid at the time of billing to the lender or collected at closing. These charges may be enclosed, but not limited to; credit report fees, property inspections, recertification of value, appraisal fees, flood cert., project approval, underwriting fees, courier fees, etc.
Underwriting Fee: This fee is paid at closing. It is a fee incurred by the lender for the underwriting of the credit package.
Warehouse Fee: This fee is collected at closing and is a fee charged by the lender for the cost associated with holding the mortgage loan pending its sale to a permanent investor.
