COSTS RELATED TO PURCHASING A HOME
Down Payment: A percentage of a home's purchase price that you pay out of pocket (For conventional loans it can be as low as 3-5%, FHA loans as low as 3.5%, Investment properties can be as low as 15%, USDA and VA can do 0% down).
Ad Valorem Tax: a property tax based on the assessed value of the real estate.
Lender Fees: Commonly seen fees include processing fees, origination fees and underwriting fees.
Appraisal Fee: an appraisal provide's an unbiased professional opinion of the home's value and is provided to the mortgage company
Credit Report Fee: Charge to have a full credit report pulled
Flood Certification Fee: determines whether or not the property is located in a flood zone
Tax Service Fee: generally charged by the lender to monitor payment of the real property taxes
Impounds: These are generally your escrowed items-these are maintained by the mortgage company who will typically collect a certain amount in addition to your mortgage payment (for taxes and insurance). They will collect upfront amounts at closing for these items. Commonly 3 months worth of taxes and insurance.
Settlement/Closing Fee: Covers the administrative costs for handling the real estate transaction.
E-Recording Fee: A charge usually required by state and/or local agencies for registering a property's transfer of ownership.
Environment Protection Endorsement: Provides coverage to the lender that the mortgage takes priority over environmental protection liens that could be found
Form 9 Endorsement: title insurance policy endorsement that allows title companies to issue insurance policies to safeguard the lender against loss or damage resulting from violations of the deed restrictions, encroachments and set back lines existing as of the date of the policy.
