When you obtain a mortgage for a real estate purchase, you will be faced with many different charges related to the mortgage. These are typically referred to as closing costs, but there are different types of fees that fall into that category. This blog provides details on lender closing charges in Newburyport MA.
Lender Closing Charges
Discount fees cost to produce the loan for a buyer.
An appraisal is required by a mortgage company but generated by an independent professional. Appraisals verify the value of a home and its condition. A mortgage will not obtain final approval until an appraisal is received, reviewed, and approved
Tax Service Fee
Real estate taxes may be included in your recurring mortgage payment. The mortgage company receives the funds from you on a monthly basis and places it in an escrow account. When the tax bill is due, the necessary amount is withdrawn from that escrow account. Many mortgage companies will charge a one-time fee to set up this tax service.
Homes situated within a flood zone must have flood insurance. Mortgage companies order a flood certificate to make that determination. Flood certificates are always billed to the home owner.
Credit reports are how mortgage companies evaluate credit worthiness and applicable mortgage rates. There is a cost associated with obtaining credit scores from the 3 major credit bureaus. Lenders will generally pass on this fee to home buyers.
Other Lender Closing Charges
The lender closing charges detailed above are merely a few of the actual fees that may be billed by your mortgage company. For a complete list of possible expenses that you may incur, or for help with other real estate or mortgage questions, contact John Wells at Wellsco Realty by calling 978-518-1481 or emailing email@example.com.