Within 3 days after you have applied for a home loan, you should receive a Good Faith Estimate of what the loan will cost.
A Good Faith Estimate is "An estimate of costs which a borrower is likely to incur in connection with a loan".
Below is a list of fees that are associated with producing a loan,
some or all of these fees will become a part of your closing cost.
| Appraisal Fee | Payment for an opinion or estimate of the value of a property. A report is prepared by a professional appraiser to explain the determination of the fair market value. This fee is often paid for at the time of application for a home loan. |
| Credit Report Fee | Covers the cost of the credit report used to help determine your creditworthiness. These reports are obtained from credit agencies and evaluate your capacity to pay debts or history of paying debts. This fee is often paid for at the time of application for a home loan. |
| Mortgage Insurance | Payment for an insurance policy that protects the lender against loss should you fail to make payments. This type of insurance is typically required on loans with less than a 20% down payment. These costs may be paid upfront, included in your monthly payment, or included in your interest rate. |
| Flood Check Fee | Covers the Federal Emergency Management Agency's (FEMA) review to determine if a home is located in a flood zone and if flood insurance is required. |
| Closing / Escrow Fee | Pays for the services of the closing or escrow agent, or the attorney that handles all the financial transfers and payments associated with the closing of your refinance loan. |
| Abstract or Title Search | Pays for a written history of the title transactions involving the parcel of land where a home is located, including everything recorded in the public record. The search checks for liens, unpaid claims, restrictions or other problems. |
| Title Insurance | The premium for title insurance, which protects you and the lender in case of an unresolved claim affecting the marketable title to the property. There are two policies issued, an owner's policy for you and a lender's policy for the lender. Special title binders and endorsements may also be included in this charge. |
| Homeowner/Hazard Insurance | The premium for a form of insurance policy required to protect against certain risks, such as fires or storms. A regular payment for this insurance can be included in your monthly home loan payment through an escrow or impound account. The cost of the first year's policy is generally paid at closing |
| Recording Fees and Transfer Taxes | Recording fees and transfer taxes are charged by most states and localities for recording the purchase documents and any liens in the public record and transferring ownership of the property. |
| Notary Fee | Covers the cost of having a licensed notary public certify the signing of your closing documents and signature |
| Survey Fee | A fee for the certification of the location of the property, its dimensions, its boundaries, its contour, and the location and dimensions of any improvements. In some cases, the lender can use the original survey done for the purchase of the property. |
In addition to the fees for producing a loan there are also Pre-Paid Costs
| Pre-paid Interest | When you buy a home, you typically don't make the first payment until the beginning of the second full month after your loan closes. For example, if you close on January 28, your first payment may not be due until March 1. However, you pay at closing for the interest on your new loan from the day of closing until February 1. |
| Escrow Accounts | Escrow or "reserve" accounts are required if your lender will be paying your homeowner's insurance and property taxes from your payments. (Usually required if you have less than 20% downpayment). Your lender sets up the escrow account by collecting 2 to 4 months worth of the annual cost of your homeowner's insurance and 2 to 4 months worth of your yearly property taxes and any other items covered by your escrow account. At closing, you'll be required to pay these amounts to fund the account. |
| Property Taxes | Property taxes in Clark County must be paid semi-annually,,. Property taxes are the most common expense prorated (shared or split) between the buyer and seller. Your closing agent should determine your portion of the taxes from the date of closing. |
Not all fees will be charged for every loan because every loan is not the same -
it is very important to have good communication with your lender.
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