- Example costs breakdown from lender, title, etc representing a Good Faith Estimate for single family obtainment.
- Fees are rough estimates of what to expect. (Fees can vary but they should be in this range.)
- Closing costs can be negotiated for the seller to pay.
- (When the investor is referenced, it refers to who the particular lender is receiving the funds from.)
LA = Loan Amount
SP = Sales Price
Sales Price – Down Payment (includes deposit) = Loan Amount
x interest rate (Ex – 5%=.05) = yearly tax deductible interest
Loan -
- Closing or Escrow Fee – Title company fee $225
- Underwriting Fee or Commitment Fee – investors fee $250 – $500
- Doc Prep Fee or Processing Fee – Mortgage company $550
- Fee is negotiable.
- Typically, the smaller the loan amount the higher the fee
- Origination Fee – (doesn’t apply in the states of KS and MO) n/a
- Loan discount fee – If applicable. You may pay points (1% of loan) to buy down rate TBD
- Credit Report – Lender fee $22.50 max
- Appraisal Fee – Required by investor to verify value $350
- Tax Service Fee – Determination of no delinquencies (some investors require it) $70
- Should be included in title work
- Doc Prep Fee – Title company $80
- Mortgagee’s Title Insurance Policy – LA x .005
- Covers the security interest of the lender. Diminishes as loan is paid down
- Brokers Admin Fee – 200 – $395
- Goes to Broker of Realtor in representation
- (Remax Legacy’s is $200)
- Recording fee – Mortgage recording of docs $100
- Recording fee – Title company to record deed to state $12
- Kansas Mortgage Registration Tax – LA x .0026
- KS tax law. Directly to state at closing. (n/a in MO)
- Flood Certification Fee – Lender requirement to verify property isn’t in a flood plain $18
- Courier Fee – Title company fee to overnight all originals to investor $20
- Delivery / Handling Fee – Title company fee to overnight docs to sellers mortgagee $25
Pre-paid closing costs -
- Hazard Insurance – SP x .007 = Annual Premium 15 months worth
- Taxes – SP x .014 = Annual tax 4 months worth
- Prepaid interest – Interest for the remaining days of month. Depends on closing date
- Ex – Close date on the 20th, you owe 10 days of interest at closing.
- The earlier the closing date, the more interest is paid at the table.
- Prorated Home Owners Association Dues – TBD
Inspections – paid at time of inspection with a personal check.
- Structural – (Condo should be roughly $175 – $200) $300 – $400
- Termite – $50 – $60
- Radon - $95 – $110
If applicable –
- FHA Mortgage Premium Insurance – LA x .0175
- Interest paid to government. Added back into the loan.
