Loan-Related Closing Costs
Loan Origination Fee & Discount Points
This covers the administrative expenses in setting-up and processing the loan. The loan origination fee & Discount Points will equal between 1% to 4% of the loan amount.
Flood Cert Fee
The lender uses a flood report to determine the location of the property within any flood zone.
Doc Prep Fee
The lender uses a 3rd Party to prepare the loan docs which are signed at closing.
Typically the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15. Your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required.
At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account.