(Mortgage) Closing Costs [Mortgage Loans] How much are loan fees?


Hey this is Chris the mortgage pro.
People ask me about closing costs, you know closing costs are different from
the down payment. Certain programs have a requirement that you put a certain
percentage down. Now, these are different, they are fees such as we have appraisal
we have a credit report we have processing we have underwriting
these these fees the standard things but then we have escrow fees now the escrow
company gets paid certain fees and some of them might be a dock drawing fee they
might have a printing fee to print the documents there’s gonna be a notary fee
they’re gonna have a loan tie-in fee if there’s a loan tied in with the
transaction they’re going to add a couple of hundred dollars on we also
have title they have numerous fees there’s recording fees to record the
loan with the county so that it’s your house and we guarantee it
so all these fees together they can add up to quite a sum of money now on top of
the fees there are other costs what are they well depends on what month of the
year depends on how many months taxes we need to get so that we put them in
together in an impound account so your payment you make one payment includes
your taxes and your insurance when we start the loan basically you’re gonna
pay 1 years and 3 months homeowners insurance up front we’re also
gonna pay you know if we’re in April we’re gonna put three months taxes if
we’re in September it’s gonna be nine months taxes so it’s something that’s
out of our control but it’s something that we have to come up with the money
for and depending on the loan amount we’ll also determine what are the fees
from the title and the escrow company if you’re paying points sometimes you pay
points to buy the rate down to get a lower interest rate or sometimes you
have a low FICO score and we have to charge points those are also dependent
on what is the size of the loan so very common $300,000 loan $8,000 $7,000 could
be nine thousand dollars depending on the time of year
and how do we pay for those well this three way is usually that they could be
paid for number one is you pay most people say I
don’t really want to pay it well that’s the reality you can pay it or we can ask
the seller to pay it or pay some very often we’ll ask the seller to pay $8,000
in closing costs and the sellers going to come back and say I don’t not paying
8000 but I’ll help you out I’ll pay 4000 or I’ll pay 2,000 now in a very
competitive market like today when you make an offer on a house we really don’t
want to ask for closing costs because what are they going to do which offer
they gonna accept that if you’re offering 300 thousand somebody else is
offering 300 thousand but you’re asking for closing costs they gonna get less so
like anybody else they want the most money for their house so when you buy
you got to consider that now the third way to pay closing costs is if you have
credit is reasonably good we can raise the interest rate up and by doing that
we get what’s called a lender credit example if I’ve raised on an FHA loan
approximately a half percent on the interest rate I can usually get about
one and a half percent of the loan amount so on a $300,000 loan I’ve raised
the interest rate a half percent I have $4,500 to lower your closing costs with
so sometimes you pay some the seller pays some and we raise the rate a little
bit and we get that combination it could be any combination of the three one two
or three but that’s what closing costs are now there’s a couple of closing
costs that are paid upfront and that is an appraisal the appraisal is paid it
depends on what type of loan whether it’s a VA loan FHA loan or conventional
loan what type of appraisal is required so the the fees can change just a little
bit within fifty to a hundred dollars the other fees we do not collect upfront
for credit report fees and those type of things but sometimes we do have fees for
a VA loan we have to have a termite report but the good news about you vet
if you’re a vet you’re not allowed to pay that so we cover that for you too so
be prepared you I have to put a little deposit down with
your realtor talk to them about that and the appraisal upfront the rest we
usually work it out as we go this is Chris Trapani and I’m gonna help you
fire your landlord

2 comments on “(Mortgage) Closing Costs [Mortgage Loans] How much are loan fees?”

  1. Fire Your Landlord says:

    Call me at 310-350-2546 and I'd be happy to explain how fees work!

  2. Fire Your Landlord says:

    Call me at 310-350-2546 and I'd be happy to explain how fees work!

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