Alta Policy and Alta Endorsements
An insurance premium charged by the title company to insure lender that encumbrance is a first lien on the property. Fee based on loan amount; refer to rate charge. Combination ALTA rate. Lender is beneficiary.
An insurance premium charged by the title company to insure lender that encumbrance is a first lien on the property. Fee based on loan amount; refer to rate charge. Combination ALTA rate. Lender is beneficiary.
Appraisal
A fee charged by an appraiser to render an opinion of market value as of a specific date. Required by most lenders to obtain a loan.
A fee charged by an appraiser to render an opinion of market value as of a specific date. Required by most lenders to obtain a loan.
Assessments
A lien on property securing payment, i.e. public improvements, delinquent homeowners association fees.
A lien on property securing payment, i.e. public improvements, delinquent homeowners association fees.
Assignment
A fee charged by the lender to cover the expense of the transfer of the loan.
A fee charged by the lender to cover the expense of the transfer of the loan.
Assumption Processing
All fees, including any assumption, transfer and or processing fees charged by the lender to process the records of the existing loan into the buyer's name.
Bringdown Endorsement
A fee charged by the lender to cover the expense of selling the loan to the ultimate investor. It includes additional title insurance.
A fee charged by the lender to cover the expense of selling the loan to the ultimate investor. It includes additional title insurance.
Brokerage
A fee paid to a real estate broker as compensation for services rendered.
A fee paid to a real estate broker as compensation for services rendered.
Collection Setup
A one-time fee charged by a company acting in behalf of the lender and borrower to set up the servicing of the loan according to the Note and mutual written instructions.
A one-time fee charged by a company acting in behalf of the lender and borrower to set up the servicing of the loan according to the Note and mutual written instructions.
Credit Report
A fee charged by the lender to obtain the credit history of the buyer(s).
A fee charged by the lender to obtain the credit history of the buyer(s).
Document Preparation
A fee charged by the lender for the preparation of documents necessary to fund the loan.
Down Payment
The difference between the purchase price and the portion of the purchase price being financed. Most lenders require the down payment to be paid from the buyer?s own funds.
Dye Test
The cost of a dye test performed to verify sewer connection. Environmental Inspection Fee(s) charged by a qualified entity to inspect and tender a report addressing potential hazardous waste issues, i.e. radon, asbestos, etc.
Escrow
A fee charged by the escrow company as a neutral third party to carry out the procedures necessary to transfer ownership of property.
Express Fee
Fee(s) charged for the mailing and/or distribution of documents by express delivery systems, i.e. Federal Express, Express Mail or overnight service.
Flood Insurance
A form of hazard insurance that may be required by the lender as a condition of making the loan. Does not cover personal property.
Home Warranty
A fee charged by a private company to cover specified defects. Coverage and deductibles vary with the provider and plan. Both new and resale homes may be warranted.
A fee charged by a private company to cover specified defects. Coverage and deductibles vary with the provider and plan. Both new and resale homes may be warranted.
Homeowners Association
The amount at close of escrow that is due in payment of the Homeowners Association Fee.
Insurance
The first annual premium, plus two months, for fire and extended coverage insurance to cover loss of property. Usually called Homeowners Insurance. In the event of a condominium property, coverage for personal property (contents) may also be needed.
The first annual premium, plus two months, for fire and extended coverage insurance to cover loss of property. Usually called Homeowners Insurance. In the event of a condominium property, coverage for personal property (contents) may also be needed.
Interest Adjustment
An estimated amount of interest due at closing. Interest is collected in arrears and therefore must be collected from the last monthly loan payment to closing or payoff.
An estimated amount of interest due at closing. Interest is collected in arrears and therefore must be collected from the last monthly loan payment to closing or payoff.
Loan Discount Points
A fee charged by the lender to make a loan at a given interest rate. One point equals one percent of the total loan amount and fluctuates depending on the interest and availability of money for loans.
A fee charged by the lender to make a loan at a given interest rate. One point equals one percent of the total loan amount and fluctuates depending on the interest and availability of money for loans.
Loan Payment Due
The payment amount due from the seller at close of escrow and/or, in the case of an assumption of the existing loan, the next payment due from the buyer.
MIP/PMI Impound
An amount for MIP/PMI required under certain circumstances and collected by the lender and held in the impound account to insure that adequate funds are available to pay the next year's premium. Usually equivalent to two months of the annual premium.
An amount for MIP/PMI required under certain circumstances and collected by the lender and held in the impound account to insure that adequate funds are available to pay the next year's premium. Usually equivalent to two months of the annual premium.
MIP/PMI Premium
An insurance premium to protect the lender against loss incurred by loan default, thus enabling the lender to lend a higher percentage of sales price. This is NOT life insurance that pays off the loan in case of death.
An insurance premium to protect the lender against loss incurred by loan default, thus enabling the lender to lend a higher percentage of sales price. This is NOT life insurance that pays off the loan in case of death.
New Loan Escrow
A fee charged by the escrow company to carry out the additional procedures necessary when a new loan is created by the lender in connection with the purchase.
A fee charged by the escrow company to carry out the additional procedures necessary when a new loan is created by the lender in connection with the purchase.
Origination
A loan processing fee charged by the lender for originating the new loan.
A loan processing fee charged by the lender for originating the new loan.
Owner's Title Policy
An insurance premium charged by the title company to insure buyer that the title is free from defects up to the date the conveying instrument is recorded. Buyer is the beneficiary.
An insurance premium charged by the title company to insure buyer that the title is free from defects up to the date the conveying instrument is recorded. Buyer is the beneficiary.
Payoff Penalty
A prepayment penalty under a promissory note imposed by the lender when the loan is paid before its due date.
A prepayment penalty under a promissory note imposed by the lender when the loan is paid before its due date.
Payoff Statement
A fee charged by the lender or collection company for payoff information.
PERC Test
A fee charged for a test, required by local ordinance, to determine the soil's ability to facilitate a septic system.
A fee charged for a test, required by local ordinance, to determine the soil's ability to facilitate a septic system.
Prepaid Interest
The amount of interest to cover the period from close of escrow until the beginning of the first payment.
Property Inspection
A fee charged by a private company or individual(s) to examine and report on the condition of a property. Report may or may not warrant condition.
Real Estate Tax Proration
An amount due for taxes accrued but not yet due and payable. Taxes are generally prorated to the day of closing. Verification for paid/unpaid taxes can be made through the County Assessor's Office.
Reconveyance/Satisfaction
A fee charged by the lender to execute the Deed of Reconveyance, or Satisfaction, when the existing note is paid off.
Recording Fees
Fees charged by the County Recorder's Office for recordation of appropriate instruments.
Road Maintenance
Cost of maintenance of roads by public or private entity paid for by taxes or assessment or by voluntary contribution. Sometimes a lender requirement.
Cost of maintenance of roads by public or private entity paid for by taxes or assessment or by voluntary contribution. Sometimes a lender requirement.
Septic Certification
A fee to have the septic system certified that it is in good working order, required by local ordinance.
Survey
A fee charged to define property boundaries.
A fee charged to define property boundaries.
Tax Impound
An amount for taxes required and collected by the lender/collection agent and held in the impound account to insure adequate funds are available to pay the taxes. The amount varies according to the closing month. BELOW IS A GUIDELINE, CHECK WITH YOUR LENDER.
An amount for taxes required and collected by the lender/collection agent and held in the impound account to insure adequate funds are available to pay the taxes. The amount varies according to the closing month. BELOW IS A GUIDELINE, CHECK WITH YOUR LENDER.
January & July............................................................................ 5 months
February & August..................................................................... 0 months
March & September.................................................................. 1 month
April & October.......................................................................... 2 months
May & November.......................................................................3 months
June & December...................................................................... 4 months
Tax Service
A fee charged by the lender to insure that the tax bill is mailed to the lender for payment from the appropriate impound account.
Transfer Fee
The fee charged by the Association to transfer ownership records.
The fee charged by the Association to transfer ownership records.
Underwriting
A fee charged by the lender to approve the loan.
A fee charged by the lender to approve the loan.
VA Funding
A fee charged by the Veterans Administration to guarantee the loan to a qualified veteran.
Warehouse
A fee charged by the lender to cover the expense incurred between funding and the sale of the loan to the ultimate investor.
A fee charged by the lender to cover the expense incurred between funding and the sale of the loan to the ultimate investor.
Wood Infestation Report
A fee for inspection to verify there is no current wood infestation and/or current or past damage done by wood infestation.
A fee for inspection to verify there is no current wood infestation and/or current or past damage done by wood infestation.
