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Common Disbursements
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Loan Origination Fee
Usually termed “points”,
this is a variable fee depending on the interest rate. You may not pay points if you wish to pay
a higher rate or reduce your rate by paying points. You will do well to work the numbers to determine
the most advantageous loan.
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% of the loan amount
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Credit Report
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$15.00-30.00
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Tax Service Fee- fee
that is charged the buyer to verify the property taxes are paid
annually.
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30-50.00
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Underwriting Fee-lender
fees to review you loan file and determine approval.
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375.00-450
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Processing Fee-this fee
is usually charged by a mortgage broker to prepare the entire loan
package for submission to a lender.
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150.00-350.00
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Buyer’s Title Policy-this
is a premium charge to insure your lender for your loan amount.
The seller will pay the higher of the title insurance premium
on your purchase transaction. The seller will insure you that they are passing
to you a home with “clear title”.
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Dependent on loan amount
e.g. 250,000-loan premium will be approx. $470.00.
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Flood Certificate-determines
that the property is not in a flood zone and if it is, flood insurance
will be required.
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10.00-18.00
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Escrow Fee-this is a
third party fee charged by company that will facilitate the transfer
of title and disbursements of monies between seller and buyer
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Usually based on the price of home;e.g. usually $150-200
base plus $2.00 per thousand of sales price
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Appraisal Fee- charged
by a Virginia licensed person to evaluate the value of the home for buyer and
lender.
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Usually 350.00, however dependent on size of home
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Courier/Express Mail-transfer
of documents between you, escrow and the lender
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50.00
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You pay home Inspection
Fee- this fee to an independent third party hired by you, the buyer,
to determine the soundness of the home you are buying.
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Estimate 250.00
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Termite Inspection- this
fee is usually paid by the seller to determine if the property is
free of termites or other wood destroying organisms. Your lender usually requires a certificate
of completion before a loan is funded.
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50.00 and up
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Home Warranty-usually
paid by seller if your agent negotiates in the purchase contract. This protects you, the buyer, against major
repairs during the first year of home ownership. You may renew this policy.
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325.00-450.00 depending on coverage.
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| Recording Fees-county
fees charged to record all public documents |
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50.00-75.00
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Notary
Fees - fees charged by a notary public to witness your signature(s)
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10.00
per signature
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Other Fees - If your down payment is less than 20% of the purchase price
of the property, the lender may require PMI (private mortgage insurance). Many lenders have programs that do not require
PMI. If you wish to avoid
PMI, you can structure your purchase to utilize two loans that will
close simultaneously.
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Property Tax impounds,
fire/hazard insurance impounds may be required by the lender dependent
on downpayment. Some lenders
also require impounds if your credit scores are below their thresholds.
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