What are Closing Costs?
Closing costs are the third party costs (appraisal fee, title fee, credit report fee, etc.), mortgage taxes and lender fees.
- Third Party Costs: A common fallacy about closing costs is that they all go to your lender's pocket. In reality, many of the closing costs are third party fees such as appraisal fee, credit report, title company fee, closing fee, survey fee, homeowner's insurance, courier fee etc.
- Government fees include the recording fee, transfer fee, property taxes etc. payable to the local and state governments.
- Lender fees include the fees payable to your lending company for their services.
US Wide Financial offers both low-cost and no-cost loan options. Talk to one of our specialists to determine what options are available to you.
|Type||Definition||Range||Paid in Advance|
|Application Fee||A fee a lender may charge when you apply for a mortgage||$200 - $500||Yes|
|Document Preparation Fee||The cost to prepare legal documents such as the mortgage, deed of trust note or deed and or title documentation||$50 - $250||No|
|Loan Discount Point||One time fee charged by the lender in order to buy down the interest rate. Points paid can lower the interest rates and save you money in the long term. (One point equals 1% of the loan amount)||0 - 3%||No|
|Loan Origination Fee||The origination fee compensates the broker and or lender in their role of evaluating, preparing, processing, administration, approving negotiating the interest rate, and financing your mortgage||0 - 3%||No|
|Processing Fee||The charge to cover the processing of your loan by a processor that works directly with various parties involved in the loan process along with handling the majority of the paperwork||$200 - $600||$0|
|Underwriting Fee||The fee to cover the underwriting of your loan by an underwriter to determine if your loan meets all the guidelines to qualify and get your loan approved||$200 - $900||No|
|Wire Transfer Fee||Charge is from the lender to wire the money to the title company at closing||$10 - $50||No|
|Gov. Fees||Definition||Range||Paid to||Paid in Advance|
|Recording Fee||The Fee paid to the county for the recording of the deed or mortgage to ensure the legal transfer of ownership.||$50 - $150||County||No|
|Transfer or Stamp Tax (varies by state)||This is a charge from the local government and will depend on the state that you live in for the amount and if there is an actual charge||0% - .50% of Loan Amount||State||No|
|Fees||Definition||Paid in Advance||Paid to||Frequency of Fee|
|Escrow or Impound Reserve||A reserve account that the borrower adds a specified amount for taxes and hazard insurance to the regular monthly mortgage payment. The money goes into an escrow account out of which the lender pays the taxes and insurance when they come due.||No||Lender||At Closing|
|Hazard Insurance||This insurance protects the owner and lender in event of physical damage to the home such as: fire, windstorm, vandalism or natural disaster||No||Insurance Company||At Closing|
|Mortgage Insurance||Private Mortgage Insurance is required if the initial down payment is less than 20% of the property value or sales price. There are different mortgage insurance plans with differing combinations of up-front, monthly and annual premiums. The most widely used premium plan is a monthly charge with no upfront premium.||Insurance Company||At Closing|
|Pre-Paid Interest||This starts to accumulate as soon as you close; the lender will calculate how much interest you owe starting from funding date though the end of the month in which you close.||No||Lender||At Closing|
|Gov. Fees||Definition||Range||Paid to||Paid in Advance|
|Appraisal Fee||Banks require an appraisal to determine the fair market value of the home before the loan can be granted. Independent appraisers appointed by the bank ensure the loan amount doesn’t exceed fair market value of the property||$300 - $500||Appraiser||Yes|
|Attorney Fee||A legal representation by an attorney to conduct duties such as: prepare loan documents, loan closing, and prevent fraud or predatory lending.||$0 - $1000||Independent attorney||No|
|Closing Protection Letter||The closing protection letter provides protection against events such as: mishandling of loan documents and funds.||$15 - $50||Title Company||No|
|Courier Fee||The courier fee is the cost of delivering loan documents to all parties involved to expedite the loan process||$20 - $40||Courier company||No|
|Credit Report Fee||The cost of retrieving your credit report with data such as: scores, liabilities, late payments and any derogatory accounts||$10 - $50||Credit Reporting Agency||Yes|
|Flood Certification Fee||This certification determines whether or not your property is not located in a federally designated flood zone||$100 - $300||Lender||No|
|Inspection Fee||An inspection is done prior to purchase to investigate any structural damage, pest, plumbing and electrical issues with the property.||$10 - $50||Independent inspector||Yes|
|Lender Title Insurance||The fee for the research and examination conducted by a title company on the property's records and ensures that no one else has a claim to the property, hidden and mechanical liens. Title insurance is required by every lender||.25% - .50%||Title Company||No|
|Notary Fee||Fee paid to the licensed Notary for witnessing and authentication of the closing documents signed for the home loan closing||$50 - $200||Licensed Notary||No|
|Owner's Title Insurance||The fee for the research and examination conducted by a title company on the property's records and ensures that no one else has a claim to the property, hidden and mechanical liens. Owner Title policy is not required but recommended for extra protection.||.25% - .50%||Insurance Company||No|
|Subordination Fee||The policy of a second mortgage lender for allowing a borrower to refinance the first mortgage while leaving the second in place||$0 - $250||Lender||Yes|
|Survey Fee||This fee covers costs to city or surveyor to make sure there are no encroachments or easement on the property boundaries.||$100 - $100||Lender||No|
|Tax Service Fee||An independent company checks to ensure that your taxes have been paid and issue tax certificates detailing your current years taxes||$50 - $100||Lender||No|
|Settlement Charges or Closing Fee||The fee for opening the escrow account, ensure proper closing of the loan and disbursement of funds from the loan proceeds to appropriate parties||$75 - $350||Title Company||No|
|Document Preparation Fee||The cost to prepare legal documents such as the mortgage, deed of trust note or deed and or title documentation||$50 - $250||Title Company||No|
I just refinanced in October with a different company and it took 2 months to do and was a pain. I had to think long and hard about refinancing again. I was highly impressed with Vibhu Grover. He was very attentive. He would answer questions when I emailed him at 2am. A couple minutes later, I would have an answer. He puts his customers first. I was highly impressed and would use Vibhu Grover again. I was very pleased and have recommended him to others already!— Terri | St. Peters, Missouri
Received a great rate on a 15 year fixed with the best closing costs I could find. Closing was quick and painless. Thanks!— Andi | St. Charles, Missouri
Always responded promptly when I had questions and kept me up to date on everything that was happening throughout the purchase transaction. Vibhu was at closing and made me feel at ease. He made sure that all my questions were answered. US Wide Financial is a great company. They care about the people and believe in the business. That's hard to find these days. Thanks for everything.— Diana | Chesterfield, Missouri
I just wanted to thank you again for all your help with my refinance. It was the smoothest loan process I have ever experienced and think you and your company will do awesome if everyone handles the process like you did.— Patti | Kansas City, Missouri