Here are the third-party fees associated with a home purchase loan. This does not include other costs that might be negotiated into your purchase contract (ex: pest inspection fee).
- Appraisal fee: A home appraisal must be done by a licensed appraiser to determine the value of the property. You will get a copy of the report.
- Credit report: We need to check your credit in order to determine your creditworthiness and monthly debt obligations.
- Flood certification: We need to determine if your property is in a flood zone to ensure appropriate insurance coverage is in place.
- Lender’s title insurance: This fee ensures we’re protected if someone later makes a claim against the title of the property.
- Other title fees: You will see several miscellaneous title fees. These are charged by the title company for things such as document processing and paying the notary.
- Real estate transfer taxes: Local and state governments charge a transfer tax when real-estate is sold.
- Recording fees: A fee charged by your city or county to officially record the sale.
- Settlement: This fee is paid to the settlement or escrow agent for coordinating the handling and disbursement of funds between the buyer and seller.
- (optional) Owner’s title insurance: This is an optional fee. It ensures you are protected if someone later makes a claim against the title of the property.
You can check today’s rates for a quick estimate of the third-party fees you’ll be charged.