Where Your Dollars Go
Type of Fee - Paid to:
- Loan Origination:
- The broker for the actual origination of loan.
- Loan Discount:
- The lender to buy down the interest rate on the loan.
- Appraisal:
- A licensed appraiser for establishing the fair market value of
the property.
- Credit Report:
- The credit reporting bureau for compiling the necessary credit
information on the borrows for a real estate transaction.
- Tax Service:
- A service company that reports to the lenders on the real
estate tax fillings over the life of the loan.
- Flood Certification:
- A service company for checking and certifying that property
is or is not in a flood area.
- Processing:
- The broker for collecting the needed documentation, verification
of the data and packaging the application.
- Underwriting:
- The lender for the final verification of data contained in the
application and analyzing for appropriate risks.
- Escrow/Settlement:
- The escrow company for coordinating buyers, sellers, lenders,
and borrows; preparing instructions and taking care
of all the transfer of funds and fulfillment of all funding requirements.
- Title Insurance:
- The title company to protect the borrower and the lender
against defects or problems with the title.
- Recording Fee:
- The title company for the actual document recording with the
county recorders office.
- Express Mail:
- The escrow company for over night mail and special delivery items.
- Wire Transfer:
- The lender for the direct wire transfer of funds.
- Document Fee:
- The lender fee for drawing the actual loan documents for your
new loan.
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