Financing

While most buyers concentrate on interest rates, it is best to look at all the costs associated with a mortgage loan. Mortgage loans include the quoted interest rate, points and closing costs.

A number of fees are associated with the mortgage loan, including:

• Appraisal - A carefully documented opinion of value by a licensed, professional appraiser.
• Credit Report - A detailed report of your credit, employment and residence history prepared by a credit bureau.
• Principal - The amount owed on a mortgage which does not include interest or other fees.
• Document Fees, Loan Fees and Processing Fees - Miscellaneous fees charged by the lender.
• Discount Points - Points paid in addition to the loan origination fee to get a lower interest rate. (1 point = 1 percent of loan amount)
• Origination Points - the total number of points paid by the borrower at closing. (1 point = 1 percent of loan amount)
• Interest Rate - A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

There are certain standard costs associated with closing of a real estate deal. These fees are split between the buyer and the seller, as spelled out in the sales contract.

As I negotiate the sales contract for you, I will not only work to get the sales price you want, I will also work to limit the number of closing costs for which you will be responsible.

I will walk you through the closing costs, answering any questions you may have explaining which costs are decreed by law to be yours and which are negotiable.

Buyers will receive a “Good Faith Estimate” of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer’s past experience and may not include all the closing costs. I will be glad to review the “Good Faith Estimate,” answering questions and highlighting missing costs and estimates I believe to be low.

• Standard Closing Costs
• Loan-Related Costs
• Loan Origination Fee
• Points (optional)
• Appraisal Fee
• Credit Report
• Interest Payment
• Escrow Account
• Taxes
• Property Taxes
• Transfer Taxes and Recording Fees
• Insurance
• Homeowners Insurance
• Flood or Quake Insurance
• Private Mortgage Insurance (PMI)
• Title Insurance