Below are listed closing costs fees and explanations:
Administration fee, Appraisal fee, Appraisal review fee, Closing/escrow/settlement fee, Courier fee, Credit Report, Document preparation, Flood certification fee: Verifies if property is in a federally designated flood zone. Flood monitoring: Monitors flood zone remapping. Home inspection, Home warranty, Homeowner’s association transfer fee, Homeowner’s insurance: usually required to pay the entire first year’s insurance at closing. Homeowners insurance impounds: two months’ worth of premiums. Lender’s Inspection fee: on new property, verifies construction is complete with carpeting and flooring installed. Loan discount: “Points.” Loan Origination Fee, Loan tie-in fee: closing agent’s services dealing with the lender. Mortgage broker fee, Mortgage insurance impounds, Mortgage insurance Notary fees, Pest inspection, Pre-paid interest: accumulated interest between closing day and first payment. Property tax impounds, Recording fees, Sub-escrow fee: title insurance company charges this. Tax service fee: monitors payment of property tax. Title insurance: for clear title to the property. Underwriting fee, Up front mortgage insurance premium, VA funding fee: paid to the VA for guaranteeing your loan. Warehousing fee: the cost of a “warehouse” line of credit. Wire transfer fee: Funds transfer from one account to another.