Mortgage Costs – Virtue Realtor

Courier Fee
A loan application fee may be charged by the lender to process your mortgage application. Ask the lender for details before applying for a mortgage.

Credit Report Fee
This is a charge ($15 to $30) from a lender to pull your credit reports from the three main reporting bureaus. Some lenders might not charge this fee because they get a discount from the reporting agencies.

Escrow Deposit
Some lenders require you to deposit two months of property tax and mortgage insurance payments at closing into an escrow.

FHA Mortgage Insurance Premium
FHA loans require an up-front mortgage insurance premium (UPMIP) of 1.75% of the base loan amount to be paid at closing (or it can be rolled into your mortgage). There’s also an annual MIP payment paid monthly that can range from 0.45% to 1.05%, depending on your loan’s term and base amount.

Homeowners’ Association Transfer Fee
If you buy a condominium, townhouse, or property in a planned development, you must join that community’s homeowners’ association (HOA). This is the transfer fee that covers the costs of switching ownership, such as documents. Whether the seller or buyer pays the fee may or may not be in the contract.

Flood Determination and Monitoring Fee
This is a fee charged to a certified flood inspector to determine whether the property is in a flood zone, which requires flood insurance (separate from your homeowner’s insurance policy).

 

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