Application Fee: Fee charged by lender to offset fixed costs related to mortgage loan processing such as appraisal, credit report, and underwriting
Closing Fee: The fee charged by the closing agent who prepares the closing documents and closes the loan on behalf of the lender
Commitment Fee: This is often called an origination fee and is generally computed at 1% of the mortgage amount
Discount Points: Each point is equal to 1% of the mortgage amount. Points are used by the lender to adjust the yield on the mortgage when it is sold to an investor. By paying more points, the borrower can obtain a lower mortgage rate
Funding Fees: Normally applicable on VA loans only, equal to 1% of the loan amount. The fee is due at closing or may be added to the loan amount and financed
Mortgage Insurance: Insurance required by the lender when the down payment is less than 20%. In the case of loan default, this insurance reduces the lender's loss
Prepayables: Adjustment to escrow accounts from the date of closing to the date of the first payment. Interest in paid through the end of the month of the closing, taxes are paid through the end of the month of closing plus the following month. 2 months of PMI are collected. 2 months of homeowners insurance may be collected. A homeowners' insurance policy must be provided along with a receipt showing that the first years' premium is paid
Recording Fees: Fees charged by state or municipal entities for entering the closing documents into public record
Survey Fee: Is usually required and is used by the lender to check for encroachments from within or from outside the subject property
Title Insurance: Provides protection for lenders and homeowners against financial loss resulting from legal defects in the title
Underwriting Fee: Usually included in the application fee. However, practices vary from lender to lender
Show Low Office Randolph Tenney, Broker 60 South White Mountain Rd. Show Low, Arizona 85901 Office: (928) 532-1111 Toll Free: (800) 237-6230 Email: info@gmactenney.com |
Pinetop/Lakeside Office Mark Rodenborn, Branch Manager 1413 E. White Mountain Blvd. Pinetop, Arizona 85935 Office: (928) 367-3100 Toll Free: (800) 422-6812 Email: info@gmactenney.com |
Snowflake/Taylor Office Troy Goodwin, Manager 1300 S. Main St. Snowflake, Arizona 85937 Office: (928) 536-5600 Toll Free: (866) 297-0143 Email: info@gmactenney.com |
Holbrook Office Yvonne Larson, Branch Manager 1100 W. Hopi Dr. Holbrook, Arizona 86025 Office: (928) 241-1229 Email: info@gmactenney.com |