Question:

What are the real estate settlement fees and costs paid upon closing?

Answer:

Use the HUD booklet to calculate on your own how much you'll have to pay for real estate settlement fees. Those charges basically consist of, but are not limited to the following items:

Real Estate Settlement Items as Per Section L, HUD-1 Settlement Statement

  1. Broker's fee: This is the broker or real estate agent's commission. It is usually paid by the seller.
  2. Items payable in connection with loan:
    • Loan origination;
    • Loan discount;
    • Appraisal fee;
    • Credit report fee;
    • Lender's inspection fee;
    • Application fee for mortgage insurance;
    • Assumption fee - not applicable in most cases;
    • Mortgage broker or CLO fee - the fee for matching you with the right loan, either through a broker, or computer loan software.
  3. Items required by lender in advance:
    • Per diem interest;
    • MIP (mortgage insurance premium);
    • Hazard insurance premium;
    • Flood insurance;
    • Etc.
  4. Escrow account deposits:
    • Hazard insurance;
    • Mortgage insurance;
    • City property taxes;
    • County property taxes;
    • Etc.
  5. Title charges.
  6. Settlement/Closing fee.
  7. Several title related charges.
  8. Document preparation.
  9. Notary fee.
  10. Attorney's fee.
  11. Title insurance (lender and owner).
  12. Government recording and transfer charges.

Final piece of advice: Monitor your credit report and score regularly, to ensure there are no inaccuracies or unauthorized activity. Your credit report and score are the two major methods that creditors and lenders use to make a credit decision about you. Higher scores usually mean lower interest rates, which will save you money.

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Common misspellings: mortage and morgage