Frequently Asked Questions

Origination Fee: A fee charged by the lender for processing the loan application, typically ranging from 0.5% to 1% of the loan amount.

• Credit Report Fee: A fee for pulling your credit score and complete credit report.

• Appraisal Fee: The cost of having the property appraised to determine its market value.

• Building Inspector: Fees for a professional home inspection to assess the condition of the property.

• Property Survey: A fee for surveying the property to determine its boundaries and ensure there are no encroachments.

• Legal Fees: Fees paid to attorneys for legal services related to the home purchase.

• Title Search: Fees for conducting a search of public records to confirm the property's legal ownership and check for any liens or claims.

• Title Insurance: Insurance that protects against losses due to defects in the title, with the cost usually based on the home's purchase price.

• Private Mortgage Insurance (PMI): Insurance required if the down payment is less than 20% of the purchase price or if PMI isn’t required for certain loan types.

• Prepaid Interest: Interest that accrues on the loan from the closing day until the end of the first month as a homeowner.

• Homeowner's Insurance: Insurance that covers potential damages to the home and protects against certain risks.

• Points: Fees paid directly to the lender at closing in exchange for a reduced interest rate; one point equals 1% of the loan amount.

• Escrow/Closing Fees: Fees charged by the title company, escrow company, or attorney for conducting the closing process.

• Recording Fees: Fees charged by the local government for recording the sale of the property in public records.