The Prepared Buyer - Charlotte NC Lender Closing Fees

When you obtain a mortgage for a real estate purchase. you will incur a range of expenses related to the mortgage. These are often called closing costs, but there are actually different types of expenses that fall into that category. This article summarizes an explanation of lender closing fees in NC.

Typical Lender Closing Fees for Obtaining a Mortgage

Discount Points

Points are a method for borrowers to secure a lower mortgage rate. It involves paying up-front interest to reduce recurring payments for the term of the loan. This option can be useful for homeowners who need a lower payment to qualify.

Origination Charge

Origination charges are specific to a lender. It typically covers the cost to complete a loan for a home buyer.

Appraisal Charge

An appraisal is mandated by a mortgage company but completed by an independent professional. Appraisals confirm the market value of a property and its condition. A loan will not obtain final approval without an acceptable appraisal.

Tax Service Fees

Real estate taxes are typically part of your monthly mortgage payment. The mortgage company obtains a specific amount from you with each mortgage payment and places those funds in an escrow account. When the tax invoice is payable, payment is made from that escrow account. Many lenders will require a up-front fee to establish this tax service.

Flood Certificate

Real estate in flood zones will require flood insurance. Lenders request a flood certificate to identify flood zone status. Flood certificates are historically charged to the home owner.

Credit Report

Credit reports are how mortgage companies evaluate credit standing and applicable rates. There is a cost for requesting credit ratings from the credit bureaus. Lenders will often pass on this fee to home buyers.

Other Lender Closing Fees

The lender closing fees discussed above are only a few of the fees that can be billed by your financing company. For a complete list of potential fees that you will incur. or for help with other real estate or financing matters. contact Jake Allen at AllenWay Real Estate by calling 704-412-7201 or emailing jake@allenwayrealestate.com