FAQ

Home Purchase Loan Costs

7 questions

Where can I get a Loan Estimate?

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Once you apply with us and provide us with the six key pieces of information to begin your application, we then will review your application, run your credit, and then provide this to you within three business days.

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.
  • 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.

What is title insurance and why do I need it?

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Title insurance protects the insured from a financial loss related to the ownership of a property.  Title companies issue two types of title policies: an Owner’s Policy which covers the homeowner and a lenders Policy which covers the lending institution. Both insurances are a one time cost- up front when getting a home loan.

Can I choose my own title insurance company?

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By law, you as the customer have the right to select your own provider for these services. If you wish to use your own provider and agree to pay the fee charged by them, we will be happy to work with them.

When will I need to pay these costs?

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Closing cost are due when you sign your final documents. You will most likely wire the funds to the title company that day, or bring a cashier check. Personal checks will not be accepted.