Congratulations!! You finally found a home you really love and you want to purchase it. There’s just one problem, you must get a mortgage to afford it. Below we have listed some fees that you may end up paying for at the closing table.


Fees Associated with Getting a Mortgage


Origination fee

Cost for originating the loan and having a licensed individual speak to the borrower about available products, rates, and requirements. This is sometimes expressed as a specifc percentage of the loan amount.

Processing fee

Cost for the processing responsibilities associated with the loan, such as gathering the documentation and making sure the software has been updated with the initial application information.

Underwriting fee

Cost for the underwriting responsibilities associated with the loan, such as reviewing the credit, income, assets, the appraisal, and making a decision to approve or deny a borrower.

Discount Point(s)

Cost for the borrower to pay in order to receive a lower interest rate.

Transfer taxes

These are the costs for transferring real estate from one person (seller) to another (buyer).

Appraisal fee

Cost for performing the service of the appraiser visiting the subject property, analyzing the details, and determining the appraised value of the subject property.

Credit Report fee

Cost for the merged credit report used in the analysis of the credit history and credit scores for the borrower(s) in the transaction.

Flood Certification fee

Cost for the service to determine if the subject property is in a flood zone or not.

USDA guarantee fee

Cost for doing business with the USDA program.

VA funding fee

Cost for doing business with the VA program.

FHA mortgage insurance premium

Cost for doing business with the FHA program.

Extension fee

Cost for extending the locked interest rate.

Although there are plenty of fees listed above there maybe even more that you may need to be aware of. Knowing and understanding these fees will at least help guide you when shopping different mortgage companies. 

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