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Breaking Down Closing Costs

posted by Stephen Katz @ 12:23 PM
Friday, November 4, 2011

· Lender Fees are collected by, and retained by, the mortgage company. These include: underwriting fee,
processing fee, closing fee, funding fee, doc prep fee and so forth. These fees should be shopped by the
consumer as they can vary greatly among lenders.
· Origination Fees – When this term is properly used it includes all discount points and lender fees. Be
cautious in using this term to compare mortgage companies, as its use is inconsistent.
· Third party fees – Are paid to outside vendors used in the course of the loan process for credit reports,
appraisals, surveys, courier, loan payoffs, and several document verifications. Mortgage companies
typically charge separately for some of these fees.
· Title Charges – Fees required to receive clear title to the property. These include closing attorney fees,
title exam, title insurance, and notary fees. These fees are typically the same among lenders although
some closing attorneys offer enhanced services such remote closings at your house or office.
· Mortgage taxes – Includes county and state stamp tax, intangible tax, transfer tax and recording fees.
These government-dictated fees should be quoted exactly the same from your local lenders. CAUTION:
Most out of state lenders leave these fees off their cost estimates.
· Closing Costs – is a term, when properly used, should include ALL of the above fees. Many mortgage
companies will not include various fees when quoting “closing costs” to make their quote appear to be
better. Some mortgage companies only quote their lender fees, figuring the rest of the fees will be the
same among other lenders you’re shopping, and hoping you only notice their lower estimate. Often
times the highest closing costs quote you receive is the most comprehensive, and therefore, the most
accurate.

Stephen Katz

(770) 309-0939 (direct) or (866) 742-8400 -- For the past 18 years, Stephen Katz has built a successful business almost entirely on referrals. As your mortgage consultant throughout the home loan process, Stephen will explain the pros and cons of all available mortgage programs and help you choose the financing option that is best suited to your needs. Throughout the loan process, he will keep you informed and will respond quickly to your requests with answers and solutions. Consistently a top producer, Stephen is a Mortgage Bankers Association "Diamond" Award winner, a Georgia Mortgage "Top Gun" and has closed almost half a billion dollars in loans. Put his knowledge and experience to work for you!

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