There are a variety of fees associated with buying real estate. These are typically referred to as closing costs, but there are actually various types of charges. This article summarizes common lender closing fees in MA.
Lender Closing Fees
Points are a way for buyers to obtain a lower mortgage rate. It involves buying down the rate to lower actual payments for the length of the loan. This option can be useful for homeowners who require a smaller payment in order to qualify.
Origination charges vary from lender to lender. It usually covers the cost to complete financing for a buyer.
An appraisal is mandated by a lender but generated by an appraiser. Appraisals calculate the market value of a property and its condition. A loan will not obtain final approval until an appraisal is received, reviewed, and approved
Property Tax Services
Real estate taxes are usually part of your recurring mortgage payment. The mortgage company receives the funds from you with each mortgage payment and places it into an escrow account. When the tax bill is due, payment is made from the escrow account. Many lenders will require a up-front fee to set up this tax service.
Properties located within a flood zone must have flood insurance. Lenders order a flood certificate to determine the status of a home. Flood certificates are always billed to the home owner.
Credit reports are used to evaluate credit status and calculate interest rates. There is a cost associated with obtaining credit scores from the 3 major credit bureaus. Mortgage companies will often pass on this charge to home buyers.
Other Lender Closing Fees
The lender closing fees provided above are merely sampling of the charges that may be billed by your financing company. For a complete list of possible fees that you may incur, or for assistance with other real estate or mortgage topics, contact Bradford Pratt at REMAX on the Charles by calling 781-316-5760 or emailing firstname.lastname@example.org.