Disclosure items (for settlement agents and lenders)

Loan costs

The loan costs you may be able to view, add, or edit for a specific loan can include but are not limited to the following:

amortization fee

Charged to set up an amortization schedule for a loan.

application fee

A fee charged by a broker or lender when someone applies for a loan.

appraisal desk review fee

Paid to have a professional determine the fair market value of a property. In a field appraisal, the appraiser visits the property. In a desk appraisal, the appraiser uses documents only.

appraisal fee

Paid to a professional who judges the value or condition of the property.

appraisal field review fee

Paid to review an existing appraisal. Includes an inspection of the property being sold and may include an inspection of the comparable sales used in the first appraisal’s analysis.

appraisal management company fee

Paid to a third‑party company who arranges and coordinates the property appraisal.

asbestos inspection fee

Covers an inspection or test for asbestos within a building.

assignment fee

Paid when an investor transfers a contract to another investor. Can be paid at the time of assignment or at closing. Typically only paid on wholesale deals.

assumption fee

Charged when an existing mortgage is taken over or assumed by new borrowers.

attorney fee

Charged for legal services.

AVM fee

Charged when an automated valuation system is used to appraise a property.

bankruptcy monitoring fee

May be charged when a borrower takes out bankruptcy to prevent foreclosure.

bond fee

Paid to set up a bond secured by a mortgage.

bond review fee

Charged to review any bonds secured by a mortgage.

certification fee

Paid to assess the financial status of a home owner’s association (HOA).

chosen interest rate credit or charge total

The sum of all payments to a mortgage broker from a lender. If the net payment to the broker is positive, the borrower receives a credit. If the net payment to the broker is negative, there is a charge to the borrower.

CLO access fee

May be charged when a borrower uses a computerized loan origination system to choose items such as lenders, mortgages, settlement providers, or other products.

commitment fee

Charged for an unused line of credit or undisbursed loan to guarantee the loan at a future date.

copy or fax fee

Charged to cover costs of copying or faxing documents between parties.

courier fee

A fee charged to deliver loan application, processing, and closing documents.

credit report fee

The cost for a report that shows financial credibility, which helps determine how good a credit risk a borrower is.

deed preparation fee

Charged to create and review the documents necessary to prepare a deed for execution.

disaster inspection fee

Covers an inspection to document the condition of a property after a disaster.

document preparation fee

Charged to prepare closing documents.

drywall inspection fee

Covers an inspection of the drywall within a building.

electrical inspection fee

Covers an inspection of the electrical system within a building.

electronic document deliver fee

A fee charged to electronically deliver loan application, processing, and closing documents.

environment inspection fee

Covers an inspection of the environmental aspects of a building.

escrow service fee

Charged to set up and manage the escrow account.

escrow waiver fee

Charged if a borrower chooses not to establish an escrow fund to collect monies for recurring costs such as property insurance and taxes.

filing fee

Paid to have documents recorded.

flood certification

Covers an inspection to verify the flood zone or flood hazard area status of a building’s location.

foundation inspection fee

Covers an inspection of the foundation of a building.

general counsel fee

Charged for legal services.

heating/cooling inspection fee

Covers an inspection of the heating and cooling systems of the building.

high cost mortgage counseling fee

May be charged if a loan exceeds certain thresholds to cover the cost of explaining to the borrower the terms, advisability, and appropriateness of the loan.

home inspection fee

Covers any inspection by a professional (not an appraiser) regarding the condition of a home.

lead inspection fee

Covers an inspection to determine the existence of lead within a building.

lender attorney fee

Covers legal fees for a lender.

loan level price adjustment

A charge for risk factors such as a low credit score or a high loan‑to‑value.

loan origination fee (points)

The lender or broker’s administrative costs for processing a loan. Also called Points.

loan originator compensation

Payment made to the loan originator.

manufactured housing inspection fee

Charged to inspect a home that was manufactured off‑site and brought to the lot, as opposed to being built on‑site.

MERS registration fee

Charged when a loan is transferred to the Mortgage Electronic Registration System.

MI upfront premium

First mortgage insurance payment made at closing.

modification fee

Charged for any changes made to the structure of a loan.

mold inspection fee

Covers an inspection to determine the existence of mold within a building (airborne or surface).

mortgage broker fee

Paid to the broker who originates the loan.

new load administration fee

Charged to cover services such as payment collection and disbursement and escrow fund management for a new loan.

notary fee

Paid for notary services.

payout request fee

Charged by initial lender to provide a statement showing how much is still owed on a loan being refinanced.

pest inspection fee

Covers an inspection to determine damage caused by pests such as termites or rodents.

plumbing inspection fee

Covers an inspection of the plumbing system in a building.

power of attorney preparation fee

Paid to prepare power of attorney documents.

power of attorney recording fee

Paid to record a power of attorney designation.

pre‑closing verification control fee

Paid to reimburse a lender who uses quality control, verification, or fraud detection tools.

processing fee

Charged by lenders or brokers to compile a loan application, including all necessary documents.

property inspection waiver fee

Charged if a borrower chooses to not pay for a property inspection and appraisal.

property tax status research fee

Paid to determine the status of a specific property’s tax status.

radon inspection fee

Covers an inspection of the amount of radon emissions in a building.

rate lock fee

Charged to hold an interest rate for a set number of days. The loan must close within the specified time period.

redraw fee

Charged if changed circumstances require that documents be re‑created.

reinspection fee

Charged if a second inspection is needed, such as after construction is complete or when repairs or improvements have been made.

repairs fee

Paid to cover professional repairs made to a property.

roof inspection fee

Covers an inspection of the roof.

septic inspection fee

Charged to determine the operability of an installed septic system.

settlement fee

Paid to the settlement company for the loan settlement or closing transaction.

smoke detector inspection fee

Covers an inspection of the smoke detectors in a building.

state title insurance fee

Charged in some states instead of a title insurance premium tax.

structural inspection fee

Covers an inspection of the structural integrity of a building.

subordination fee

Charged to assure that a first mortgage takes precedence over a second mortgage.

survey fee

Covers an inspection of the physical boundaries of a property, including a drawing and description of the property’s improvements (such as buildings, fences, pools, and so forth).

tax‑related service fee

Charged if a third‑party monitors or handles the payment of property tax to ensure that payments are made on time.

temporary buydown administration fee

Charged by a lender who manages a temporary buydown.

temporary buydown points

Paid to temporarily lower the interest rate on a mortgage.

title certification fee

Charged to research, create, and certify a record of the ownership of a piece of land (a title abstract).

title closing fee

Paid to the title company for handling the loan closing.

title closing protection letter fee

Paid to title insurance underwriters for a document laying out the responsibility for negligence, fraud, and errors in closings they perform.

title documentation preparation fee

Paid to title companies for document preparation and ownership transfer.

title endorsement fee

Paid to title companies for preparation of any necessary endorsements related to the title policy.

title examination fee

Paid to title companies for a title search and title abstract preparation.

title final policy short form fee

Charged when the American Land Title Association (ALTA) short form title policy is used instead of the standard policy.

title insurance binder fee

Paid to title companies to cover the title commitment.

title insurance fee

Paid for a policy that guarantees that an owner has title to a property. Also insures against errors in the title search.

title lender coverage premium

Paid to title companies to protect the lender if clear ownership of a property comes into question.

title notary fee

Charged for notary services proved by the title company.

title service sales tax

Charged if the recording county (or jurisdiction)or state requires a tax on title services.

title underwriting issue resolution fee

Paid to title companies for research and resolution of title issues.

underwriting fee

Charged by a lender to evaluate whether a borrower qualifies for a mortgage loan. The fee may be manual, or automated if the lender uses a special system for the evaluation.

verification of assets fee

A fee paid to verify assets disclosed by a borrower as part of a loan application.

verification of employment fee

A fee paid to verify employment disclosed by a borrower as part of a loan application.

verification of income fee

A fee paid to verify income reported by a borrower as part of a loan application.

verification of residency status fee

A fee paid to verify resident status reported by a borrower as part of a loan application.

verification of tax return fee

A fee paid to verify financial information reported on tax returns supplied by a borrower during loan application.

verification of taxpayer identification fee

A fee paid to verify social security numbers or tax numbers supplied by a borrower during loan application.

water testing fee

Covers a water quality test.

well inspection fee

Covers inspection of any wells on the property.

wire transfer fee

Charged if loan‑related funds are wired.

FHA 203k loan fees

If a loan is for the repair of a damaged or older home and is backed by the federal government, you may be able to add fees such as the following:

203K architectural and engineering fee

Paid for architectural and engineering work. Dependent on the scope of services for the type of project. Generally do not apply to a streamline loan.

203K consulting fee

Paid for an on‑site visit before the appraisal and the preparation of a specification of repairs. May also prepare a feasibility study. The consultant must be HUD‑approved. Optional on streamline loans.

203K discount on repairs

Points on the portion of a mortgage specified for repairs.

203K inspection fee

Ensures that the repairs are done to FHA standards.

203K permits

Covers any required local city or county agency permits.

203K supplemental origination fee

1.5% of the loan or $350, whichever is higher, to cover the extra work needed to est up and manage the escrow account.

203K title update

Protects the title from builder liens for disputed pay. Ensures the that FHA loan remains in first position on the title.

NOTE: 203K loan fees are in addition to standard closing costs.

Closing cost details—payoffs and payments

Monies borrowed as needed, expressly for repair or addition to an existing home. Has a set credit limit, but the loan can be renewed as it is paid down.

If the loan is for a refinance, you may be able to add the following types of debts that must be paid at or prior to closing:

collections, judgments, and liens

Monies owed because of a court decree, including all types of delinquent credit.

deferred student loan

Borrowed college funds whose payments have been temporarily suspended.

delinquent taxes

Local, state, or federal taxes that are overdue.

first position mortgage lien

Has priority over all other liens or claims on a property.

garnishments

Monies, wages, or property that must be applied to a specific debt or creditor.

HELOC

Home equity line of credit. Uses the borrower’s home as collateral.

See Disclosure items (for settlement agents and lenders).

homeowners association lien

Monies owed for monthly fees or special assessments.

installment

Loan repayment due as one of several equal payments.

open 30‑day charge account

A bill that requires a monthly payment.

personal loan

A loan typically used for large expenses that are not appropriate for a credit card, such as financing a car, renovating a home, or consolidating debt.

revolving credit

A specific type of line of credit where the amount of credit resets after payments are made.

second position mortgage lien

A second mortgage. First mortgages get priority over second position loans.

tax lien

A claim against a property for unpaid taxes. Imposed to secure the payment of any type of unpaid tax.

taxes

Local, state, or federal taxes that are due.

third position mortgage lien

A third mortgage. First mortgages get priority over second position loans; second mortgages get priority over third position loans.

unsecured home improvement loan ‑ installment

Lump sum borrowed expressly for repair or addition to an existing home. Paid off using several equal payments.