Understanding loan fees is an important part of the mortgage process.
In addition to the cost of an appraisal and credit report, which have been covered in other videos, this video help you understand the various other costs of obtaining a mortgage, including:
— loan origination fees
— pre-paid items
— escrow items
As you’ll see in the video, when you turn in your application you’ll be required to pay a loan application fee to cover the costs of underwriting the loan. Sometimes this fee pays for the home appraisal and credit report, or may be in addition to those charges.
You will receive a copy of your credit report and appraisal prior to or at closing.
The application fee is generally non-refundable.
Points and loan origination fees are up-front interest you pay on the loan. Often, this is where mortgage lenders make their initial profit on the work they do for you.
Sometimes you can “buy-down” an interest rate by paying more in points and origination fees. In effect, you’re giving the lender their profit early, so they have less risk, and will capture expected revenues earlier than they might otherwise.
This allows them to charge less in interest.
The most qualified individual to advise you on your loan costs is your loan officer. They are required to do so with a loan estimate within three days of your applying for a loan.
However, as the oldest and most established title company in Naples and Marco Island, we have represented tens of thousands of borrowers on mortgage financed purchases. Our attorneys and title professionals are able to review your loan terms and costs to provide you with added assurances that you are choosing the best mortgage for your needs, and fully understand the features of the loan.
For nearly 40 years, First Title & Abstract, Inc. has been the FIRST choice for thousands of borrowers when selecting a title company in Naples and Marco Island. We are TRID, CFPB, and ALTA compliant, and knowledgeable about hundreds of loan products.
We would be pleased to assist you in closing on your refinance, or mortgage financed purchase.
Please call upon us anytime.