FAQ

Home Purchase Loan Costs

6 questions

Where can I get a cost estimate?

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Once you find a property and get pre approved from one of our experienced mortgage professionals, we will provide you with an official Loan Estimate.

Does Loan Cabin charge lender fees?

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Loan Cabin does charge a lender fee of $1290.00 on most loans. There are zero application fees and origination points.

How much will it cost me to buy a home?

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  • Down payment: This is the portion of payment saved up by you that we deduct from your purchase price and we lend you the rest.
  • Third-party fees: These are fees paid to third parties, not us at Loan Cabin. These services are required to get a purchase loan no matter which lender you use and we don’t mark up the prices. Some of those fees may be paid by the seller. Examples of these fees are appraisal fees, title fees, attorney fees, and flood transfer taxes.

Which third-party fees will I be charged?

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Here is a list of some of the third-party fees associated with a home purchase loan. This does not include other costs.

  • Appraisal fee: A home appraisal must be done by a licensed appraiser from our appraisal management company to determine the value of the property. Once this is completed we will provide you the report for your records.
  • Credit report: We need to check your personal credit in order to determine your creditworthiness and monthly debt obligations.
  • Flood certification: We need to determine if your property is in a flood zone to ensure appropriate insurance coverage is in place.
  • Lender’s title insurance: This fee protects us as a lender against problems with the title of your property.
  • More title fees: You will see small miscellaneous title fees charged by the title company of choice. These are charged by the title company for things such as document processing, wire fees and closing fee.
  • Real estate transfer taxes: Local and state governments charge a transfer tax when real-estate is transferred or sold from one entity to another.
  • Recording fees: A fee charged by your city or county to officially record the sale, so that is becomes a matter of public record.
  • Settlement: This fee is paid to the settlement or escrow agent for coordinating the handling and disbursement of funds between the buyer and seller.
  • Owner’s title insurance: It ensures you are protected if someone later makes a claim against the title of the property. Protects your financial investment in the home.

When will I need to pay these costs?

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Once your offer is accepted by the seller listing the home, you will then sign a purchase agreement between yourself and them. The seller will require you to put down earnest money to secure the property. This payment shows the seller you are serious about their home and they can hold your earnest money in good faith that you will purchase the property. Don’t worry, this amount will be applied to your down payment at the time of closing.

At the very end, at the time of closing you will then pay for the remaining down payment, third party fees, and pre-paid cost.