- Example costs breakdown from lender, title, etc representing a Good Faith Estimate based on single family obtainment.
- Fees are a rough estimate to set expectations. Fees can vary but they should be in or close to these ranges.
- Any and all fees are reviewed for NowlinRE clients intensely.
- When the investor is referenced below, 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
- Closing or Escrow Fee – Title company fee $225
- Underwriting Fee or Commitment Fee – investors fee $300 – $650
- Doc Prep Fee or Processing Fee – For Mortgage Company $395 – $550
(Typically, the smaller the loan amount the higher the fee)
- Origination Fee – Based off of base loan amount (with any funding fees included) 1% if applicable
- Loan discount fee – If applicable, you may pay points (1% of loan) to buy down rate TBD
- Credit Report – lender fee for pulling it from one of the three bureaus $22.50
- Appraisal Fee – Required so bank knows property is worth what they are loaning $425 – $525
- Tax Service Fee – Determination of no delinquencies (some investors require it)
Should be included in title work $70
- Doc Prep Fee – Title company $80
- Mortgagee’s Title Insurance Policy –
Covers the security interest of the lender. Diminishes as loan is paid off LA x .005
- Brokers Admin Fee or Realtor Fee –
Broker fee of Realtor you are being represented by $200 – $395
Remax Legacy’s is $200. Other Kansas City brokerages is $250 – $395
- Recording fee – mortgage recording of docs $100
- Recording fee – title companies recording of deed with state $12
- Kansas Mortgage Registration Tax – KS tax law. Directly to state at closing. NA in MO
$2.60 per $1000 of loan or LA x .0026
- Flood Certification Fee – verifying property is not in flood plain $26
- Courier Fee – to overnight all originals to investor $20
- Delivery / Handling Fee for Payoff – overnight paperwork to sellers mortgagee $25
- 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
- Structural – (Condo should be roughly $175 – $200) $300 – $400
- Termite - $50 – $60
- Radon - $95 – $110
- FHA Mortgage Premium Insurance – Government’s way of incurring loan, added back into the loan LA x .0175
- VA Funding Fee - benefit of no down payment LA x .0215
Second time users LA x .033