*Some lending institutions are not required to disclose ALL fees, they can say they don’t exist, or show no Charge? Remember that most of these fees are not a Mortgage Brokers fee, but part of the process.

Loan Origination
The company that originates the loan usually keeps this fee to cover cost of doing business.

Loan Discount Points
This fee can change as fast as the Stock Market, based on the cost of that particular interest rate at that specific time.

Appraisal
Most appraisers are independent, and charge fees based on size or difficulty of placing value to a property.

Credit
Brokers’ buy your Residential Mortgage Credit Report from credit companies; most guidelines do NOT allow brokers to charge extra.

Lender’s Inspection Fee
This should be called appraisers or investors fees, there may be a need to re-inspect the property if something was fixed or replaced.

Mortgage Broker Fee
This where a broker could charge for something above and beyond normal, if that particular loan allows the fee.  (Very unusual)

Tax Service
Is used to report to your and the lien-holder, if the property taxes did not get paid by the service company.

Processing
Originators gather all the documentation and determine which program is going to be used for each loan, then packages it, for the investors.

Underwriting
The investing or funding company must make sure the loan follows the guidelines for that particular loan, and all the documentation is in the package.

Wire transfer
Institutions no longer use checks to fund loans; they are wired between banks, warehouses, and title companies.

Courier, Fed-x fees
Even with today’s technology, many forms and documents must be original, and must be delivered here and there, manually.

Flood certification
All properties are required to be checked, to see if they are in a designated
 flood zone, the Investor gets the certificate you get a copy.

Warehouse fee
Used by Banks and Mortgage Bankers, to “Store” the money needed to fund their loans.  NOT applicable for most Mortgage brokers.

Doc Prep
Most companies include preparation of the legal documents as part of the underwriting or Administration fees.

Closing Review
Most companies include this fee as part of the underwriting or Administration fees.

Recording fees
Although the cost of recording at the county is small, a bonded, neutral person must deliver the documents.

Doc prep. Escrow
There may be documents that escrow prepares that the lender does not. (Not on all loans)

**A portion of some or all of these fees, can be collected to cover the difference between closing date and your first payment.

Interest
Starts the day the loan funds.

Mortgage Insurance
May be required, if there is not enough security in the loan.

Hazard Insurance
Helps with costs of unknown accidents and disasters.

Property Tax
Start the day of ownership

VA funding fee
Veterans who are not disabled will pay this fee to the Veterans Administration.

Title and Escrow fees

Closing or Escrow fee
Escrow is a neutral party to the transaction, for this neutrality there is a charge; they protect the rights of all involved.

Doc prep.
There may be some documents that Escrow prepares, that the lender does not. (Not all loans)

Notary fee
Many of the documents must be notarized for the protection of the parties.

Attorney Fees
If an attorney were used in the transaction this is where the fee would show up.

Title Insurance
After the search (CLTA) has been completed, to prove there are no clouds on title, the (ALTA) policy will be issued.

Recording Fees
Although the recording fees at the county are small, a bonded neutral person must deliver the documents.

City, County, and State taxes
Sellers usually pay these fees, because it involves the sale of the property not the purchase.

Pest inspections, Reports and re-inspection
Many of the loan programs require a clear pest report either section I or II or both. It’s protection for both you and the seller.