Friday, April 2, 2021

What’s Included in your Mortgage Closing Costs

 You may be aware of the down payment required to buy a home, but what about closing costs associated with a mortgage at the Lake of the Ozarks? As the best mortgage lender at Lake of the Ozarks, Team Lasson takes pride in providing exemplary mortgage services and education to our clients. In this week’s blog, I’m going to be discussing the closing costs related to a mortgage and what you can expect. Continue reading to learn more!

Typical Closing Cost Fees:

You will receive a Loan Estimate which is an itemization of all the fees associated with your initial loan disclosures. Here are some of the fees that you will likely encounter:

Application Fee: this fee is charged by the lender to process your mortgage application. *Please note that Team Lasson does not charge this fee*

Origination Fee: this fee covers the lender’s administrative costs to process your loan.

Attorney Fee: this is a fee charged by a real estate attorney to prepare and review home purchase agreements and contracts.

Closing Fee: the closing fee is paid to the party that handles the documents and collects signatures at closing; typically, the title company in our area.

Courier Fee: this fee is incurred to help expedite the transportation of your closing documents. If the closing is done digitally or in-house, you may not encounter this fee.

Recording Fee: a fee charged by your local recording office, typically a city or county clerk’s office. This is for the official processing of the public land records.

Credit Report Fee: this fee covers the cost a lender incurs when they pull a tri-merged credit report from the three main reporting bureaus.

Escrow Deposit: this is an amount to set up an escrow account for property tax and homeowner’s insurance payments at closing.

Homeowners Insurance: lenders typically require a full year of the homeowner’s insurance premium at closing.

Lender’s Title Insurance: this is charged by the title company to issue the lender an insurance policy that protects them if there is an ownership dispute or lien that wasn’t found on the title search.

Owner’s Title Insurance: this is charged by the title company to issue you a title insurance policy that protects you if your ownership of the home is challenged.

Prepaid Interest: this payment covers any prorated interest on your mortgage that would accrue from the date of closing until the time of your first mortgage payment.

Appraisal Fee: a fee paid to a professional home appraisal company for assessing the homes fair market value.

Property Tax: a prorated property tax fee that collects for property tax due from the closing date to the end of the tax year.

Real Estate Commissions: (Typically seller paid but can be negotiated) The commission charged by your real estate agent. This fee is split between the buyer’s agent and the seller’s agent.

Title Search Fee: a charge by the title company to analyze the public records and history of the home for any discrepancies that could lead to ownership issues.

Underwriter Fee: a charge by the lender for the work completed by underwriters that review and analyze your loan transaction.

These are just some of the standard fees that one will likely encounter when undergoing a mortgage transaction. However, there are certain fees that only apply to special loan products, rate locks, flood or private mortgage requirements, and out of state transactions. Always be sure to discuss any fee related questions with your mortgage officer.

Your Mortgage Lender at Lake of the Ozarks: Team Lasson

Closing costs are unavoidable when buying a home. Although, there are strategic ways that you can reduce the amount of your closing costs. As your premier mortgage lender at Lake of the Ozarks, I’m always happy to discuss any mortgage related options for you to find the best solution. So, if you’re ready to buy a home at Lake of the Ozarks, I encourage you to reach out so we may discuss your mortgage options to find the best fit for your homebuying needs. 

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Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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