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Closing charges fall into two categories:

Adjusted origination fees are the sum of your lender’s origination fees and any credit or charge (points) for the specific interest mortgage rates on your mortgage loan. These charges are expressed as a percentage of the face value of the loan and can not be changed at the time of closing.

Origination charges are charges that your lender charges you for preparing and submitting your completed mortgage loan application.

You could also have a credit or charge (point) for the specific interest mortgage rates on your home loan, which will reduce or increase your origination charges. One point equals 1% of the amount of the mortgage.

For example, for a mortgage loan of $ 100,000, a point would be $ 1,000. –

Other closing services include most of your closing charges. Some common charges in this section are:

Pricing Fee:

The fee paid to the professional appraiser for determining the value of the home you want to buy. Since housing is the guarantee of the amount you finance with your mortgage loan, your lender needs to know that the value of the property covers the loan amount. Generally, lenders do not grant a mortgage loan amount higher than what the appraiser indicates the acceptable market value of the property.

Credit Report Fee:

The cost of obtaining copies of your credit report to evaluate your mortgage loan application. Your credit score, included in your credit report, is one of the most important factors in determining the interest rate that will be offered.

Title and Title Insurance Charges:

Charges paid to a title deed company for finding out in the county records to make sure that the title of the property you wish to purchase is free from any complication, such as outstanding debts or property liens.

Government Registration Fees:

The charge required to register the property in your name: Owner’s Insurance: This charge corresponds to the insurance you must contract for the property in order to protect it against losses caused by fires, floods and storms. In many cases, the owner chooses to allow the lender to pay the insurance from a escrow account that the lender establishes for the owner.

Initial escrow account: Represents the money you must pay in advance to establish the escrow account, so that the provider can use this account to pay for the owner’s insurance, property taxes and other charges, if Corresponds.

Declaration of Veracity in a Loan

You will also receive a statement of truth on a loan within three business days of completing your mortgage application. The statement of truth in a loan is one of the most important forms of the entire mortgage process.

Here you can see the total cost of your mortgage under the terms of your particular mortgage loan. This statement is required by law to tell you the full cost of your credit and give you the opportunity to ask questions and know how much you will pay for the mortgage loan you will receive.