Mortgage Settlement Costs-Origination Fees, Title Insurance and More HOME BUYER Episode 00016

Mortgage Settlement Costs-Origination Fees, Title Insurance and More HOME BUYER Episode 00016. Maryland Real Estate Information: WHAT IS A LOAN ORIGINATION CHARGE?

Mortgage Settlement Costs-Origination Fees, Title Insurance and More HOME BUYER Episode 00016 video duration 22 Minute(s) 57 Second(s), published by Lawrence Sanek on 15 08 2017 - 13:59:27.

The mortgage settlement process–sometimes called mortgage closing–can be confusing
A settlement may involve several interested parties and a variety of Welcome to the LAST session of the home buying course
We've done everything (nearly)
Now we are going to find out about closing costs
WHAT ARE .

(916) 802-1570 Bill Swars is a Sr
Loan Officer with Excel Mortgage Services in Roseville, CA
A mortgage and loan professional for more than ten years, Bill is You probably heard the term “loan origination fee” as you fish out loans to apply for
The fee itself can be negotiable
Moreover, the more money you want to Maryland Real Estate Information: WHAT IS A LOAN ORIGINATION CHARGE? For more information or to browse Maryland homes for sale and real estate.

The mortgage settlement process–sometimes called mortgage closing–can be confusing. A settlement may involve several interested parties and a variety of documents and fees. This will help you understand the steps involved in the settlement process. Although the focus here is on settlements for home purchases, much of the guidance will also apply if you refinance a mortgage. \r
Settlement costs can be high, so it pays to shop around for settlement services and negotiate with the home seller, your mortgage lender, and your real estate attorney or settlement agent. The less you pay in settlement costs, the more funds you will have to get started in your new home. \r
Negotiate the terms of your purchase\r
Customs and practices during settlement often vary regionally, with buyers and sellers free to negotiate which party pays certain fees. In slow-moving real estate markets, for example, the seller may agree to pay certain settlement costs including points or fees usually assumed by the buyer. In fast-moving markets, the buyer may have to agree to pay more costs to close the deal as an incentive to the seller of a property in great demand. Whatever you negotiate should be in writing and will become the basis of the sales contract. However, be careful: if some buyer’s costs are shifted to the seller, the price you pay for the property may increase if the seller wants to recoup those costs. You can reduce some costs by shopping around for settlement services. The more you know about the settlement process and related costs, the better your chances are for saving money at settlement time. \r
Because settlement practices vary significantly based on your locale, it is difficult to provide reliable estimates for costs that fit every settlement situation you may encounter. However, one rule of thumb for buyers is to figure that settlement costs will be about 3% of the price of your home. In some relatively high-tax areas of the country, however, 5% to 6% may be more common.\r
Some settlement costs, such as homeowner’s insurance, private mortgage insurance, or points, can be more expensive if your credit rating is low. Knowing your credit score, therefore, can help you understand how lenders will evaluate your applications and how that score may impact the cost of your mortgage loan and help you to anticipate your settlement costs. Your lender is required to give you a copy of your credit score as part of the settlement process. Make sure you get a copy of your score.\r
Understand the types of settlement costs \r
Most people associate settlement costs with mortgage loan charges. These fees and charges vary, so it pays to shop around for the best combination of mortgage terms and settlement costs. Mortgage-related costs that may apply to your loan include the following items. \r
Application fee\r
Imposed by your lender or broker, this charge covers the initial costs of processing your loan request and checking your credit report. \r
Estimated cost: $65 to $640, including the cost of the credit report for each applicant Median cost: $365 \r
Loan origination fee\r
The origination fee (also called underwriting fee, administrative fee, or processing fee) is charged by the lender for evaluating and preparing your mortgage loan. This fee can cover the lender’s attorney’s fees, document preparation costs, notary fees, and similar charges. \r
Estimated cost: $2,130 to $3,105 with a 5% down payment; $1,984 to $2,865 with a 10% down payment \r
Median cost: $2,734 with a 5% down payment; $2,537 with a 10% down payment \r
Points\r
Points are a one-time charge that may be negotiated with the lender, usually to reduce the interest rate you pay over the life of your loan. One point equals 1% of the loan amount. For example, one point on a $100,000 loan would be $1,000. In some cases–especially in refinancing–points can be financed by adding them to the amount that you borrow. However, if you pay the points at settlement, they are deductible on your income taxes in the year they are paid (different deduction rules apply when you refinance or purchase a second home). In your purchase offer, you may want to negotiate with the seller to have the seller pay all or a portion of the points. \r
Estimated cost: 0% to 3% of the loan amount \r
Appraisal fee\r
Lenders want to be sure that the purchased property is worth at least as much as the loan amount. An appraisal fee pays for a determination of the value of the home and lot you \r
want to purchase or refinance. Some lenders and brokers include the appraisal fee in the application fee; you can ask the lender for a copy of the appraisal. If you are refinancing and have a recent appraisal of the property, some lenders may waive the requirement for a new appraisal. \r
\r
Estimated cost: $263 to $444 \r
Median cost: $292 \r
Lender-required home inspection fees\r
Lenders may require a termite inspection and an analysis of the structural condition of the pro