| ITEM
|
DESCRIPTION
|
AVERAGE COST
|
| Loan Origination Fee
|
This fee covers the lender's administrative cost for the loan.
|
1% of loan amount
|
| Discount Points
|
A one-time charge used to adjust the yield on the loan to market conditions.
|
Each point equals 1% of loan amount
|
| Appraisal Fee
|
A fee for a statement of property value made by an independent appraiser.
|
$300-$500 conventional loan; $300 VA loan; $450 or higher FHA loan
|
| Credit Report
|
A report obtained from a credit reporting agency detailing the borrower's credit score and history.
|
$50 - $75
|
| Funding Fee
|
Fee charged by the Veterans Administration on all VA loans.
|
2% of loan amount if veteran pays no down payment; 1 1/2% if 5% down payment; 1 1/4% if 10% down payment; 3% if veteran has used VA prior funding, not putting down minimum of 5%
|
| Interim Interest
|
Interim interest is collected on the loan from date of closing for the balance of the month when closed (except when the closing takes place on the first day of the month). Interest rate x the loan amount divided by 365 = factor x number of days remaining in month = interim interest.
|
|
| Private Mortgage Insurance (PMI)
|
Is required on mortgages with a loan-to-value ratio of 80% and up. Some lenders require the entire premium paid at closing while others require a percentage at closing with monthly payments escrowed. Mortgage insurance protects the lender from loss due to payment default. Mortgage insurance can allow borrower to obtain up to 95% financing.
|
Premiums vary with coverage.
|
| Hazard Insurance
|
Lenders require a fire (and extended coverage) policy covering at least the amount of the mortgage. If the property is in a flood prone area, as defined by FEMA maps, flood insurance is mandatory. The lender will request a Flood Certification from a third party provider.
|
First year premium is paid at closing. Flood certification costs $15-$20.
|
| Escrow Deposits
|
Funds held in an account by the lender to assure future payment for such recurring items as real estate taxes, hazard insurance and mortgage insurance.
|
2 months hazard insurance; 2 months mortgage insurance; 5 months taxes (average)
|
| Attorney Fee
|
The closing is normally handled by the Buyer's attorney. The attorney is responsible for obtaining title insurance, handling and computing the closing statement (including all prorations and adjustments) and recording pertinent documents. The deed is normally prepared by an attorney selected by the Seller. However, the Seller often chooses to use the Buyer's closing attorney for preparation of the deed.
|
$450 - $600
|
| Title Insurance
|
Protects against loss due to problems or defects in the title, which cannot be found or aren't found on public record. This insurance is required by the Lenders and the cost is borne by the Buyer. It is a one-time fee payable at closing. Both lenders' and owners' policies are available. Although not necessarily required by the lender, the owners' policy is strongly advised.
|
$2 per $1,000 of coverage
|
| Recording Fees
|
Recording fees for deed, deed of trust, and any and all other documents.
|
$35
|
| Survey
|
A survey is required to show the exact locations of the house and the lot line, along with easements, buffers and setback lines.
|
$200 - $300
|
| FHA Mortgage Insurance
|
Mortgage insurance required by HUD. May be paid at closing or financed with loan amount.
|
.0225 x loan amount (if financed)
|
| Transfer Taxes
|
Transfer taxes in N.C. are computed on the selling price and are paid by the Seller.
|
$2.00 per $1,000
|
| Disclosure and Document Handling Fee
|
Transaction charge by the real estate company for the required 3-year storage of all contract related buyer/seller documents.
|
$150 - $300
|
| Home Inspection
|
The Buyer's option to have a home inspection per clause #12(b) in the Offer to Purchase and Contract.
|
$275 - $475
|
| Termite Inspection
|
A report from a N.C. licensed pest control operator stating as to the evidence of wood-destroying insects and resulting damage.
|
$75
|
