Down
Payment
Most
lenders require at least 10% of the purchase price, though new programs are
available for 3%-5% down. 100% financing can be found, but you credit must be
excellent and PMI insurance will be required. Loan Origination Fee
A lender's
fee for establishing a new loan. Government regulations allow only 1%
origination fee on FHA or VA loans. Conventional loan fees can vary from -1 to
3+ points, plus other costs. A point is 1% of the loan.
Appraisal
Fee
Fee paid to obtain an estimate of market value upon which the lender will base
the loan amount. The cost is about $300-$500. Non refundable.
Credit
Report
An evaluation of the buyer's credit habits made by a
credit bureau for the lender. The cost is $50-$60. Non
refundable.
Tax Service
Fee
A charge of approximately $75 is made by a tax service company to verify to the
lender that the taxes have actually been paid when due or are due to be paid by
borrower or mortgage company if impounding. Call Dale for Pinehurst Forest
Creek MLS Listings.
Assumption
Fee
Fee of approximately $250 up to 1% of the loan balance is charged by the
existing lender for the privilege of assuming the existing loan.
Fees of $75 - $175 is charged by termite companies for inspecting property for
damage done by wood destroying organisms and dry rot. It is customary for the
seller to pay for Section 1 and the buyer for Section 2 work.
Other
Inspection Fees
Other inspections the buyer may choose to have done are: property inspections
that usually cover foundation, electrical, plumbing and overall construction at
a cost of $300-$400. Roof inspections cost $75-$125. Geological reports cover
subject's site in relation to fault and slide zones, costing about $100. Septic
$200-$400. Radon $50-$100. Asbestos $75-$125.
Title
Insurance
This is an extended policy with more specific coverage
than the standard policy. It covers unrecorded liens, is based on loan amount
only and is required by almost all lenders. The cost is obtained from a rate
chart and is based on the loan amount.
Miscellaneous
Costs & Fees
An estimate of $150 should be adequate to cover minor items as notary,
recording documents, endorsements, etc. as well as allowing for variations from
these other estimates.
Hazard
Insurance Reserve
Two month's premium is collected for the impound account if required. The buyer
will need to either provide or pay for coverage for the 1st year. Call Dale for
a Forest Creek Home.
Prepaid
Interest
Interest must be paid from COE (close of escrow) to 30 days prior to the first
regular mortgage payment. An estimate of one months
interest should suffice.
Mortgage
Insurance
Mortgage Insurance is required on all conventional loans greater than 80%. The
cost may range from 1/2% to 1% per year and 14 months premium is collected in
advance. This is coverage for the lender in case of default.
Tax
Impounds
If the new loan is going to have an impound account, the lender will require
from 2-10 months taxes to be deposited, depending on the time of year. Note: if
taxes are prorated, buyer's total charge for taxes should equal about six
month's taxes.
Escrow Fee
These fees range from $750-$2500, depending on the
sales price. In some counties its customarily paid by
the seller, in other counties the buyer pays, while in others it may be
customarily split. Remember though, everything is negotiable. Call Dale for
Forest Creek Homes.
Negotiating Fees
The above fees are typical costs when buying real estate in
Coldwell Banker United Realty
Dale
Heck – Realtor/Broker
910-528-4652
Cathy Bason – Realtor/Broker
910-528-5244