When you obtain a mortgage for a real estate purchase, you will incur a variety of expenses related to the mortgage. These are often referred to as closing costs, but there are actually different types of fees. This article covers an explanation of lender closing fees in MA.
Lender Closing Fees
Discount fees are a way for borrowers to secure a lower interest rate. It involves paying interest up-front to reduce actual payments for the length of the mortgage. This option may be important for buyers who need a smaller payment in order to qualify.
Origination fees vary from company to company. It typically covers the cost to complete a loan for a buyer.
An appraisal is mandated by a mortgage company but generated by an appraiser. Appraisals calculate the value of a property and its condition. A loan will not obtain approval without a acceptable appraisal
Property Tax Services
Property taxes may be included in your recurring mortgage payment. The mortgage company obtains a specific amount from you on a monthly basis and places it into an escrow account. When the tax is payable, payment is made from the escrow account. Many mortgage companies will require a one-time fee to create this tax service.
Real estate situated within a flood zone will require flood insurance. Lenders request a flood certificate to identify flood zone status. Flood certificates are always the financial responsibility of the home owner.
Credit reports are how lenders evaluate credit status and applicable rates. There is a cost for retrieving credit scores from the credit bureaus. Lenders will often pass on this fee to the borrower.
Additional Lender Closing Fees
The lender closing fees detailed in this blog are only sampling of the fees that may be imposed by your lender. For a complete list of potential expenses that you will incur, or for assistance with other home buying or financing matters, contact Bradford Pratt at REMAX on the Charles by calling 781-316-5760 or emailing email@example.com.