When you purchase a home, you will have to pay the associated closing costs. These costs can be incredibly confusing and are related to a variety of different things. Property taxes, appraisal fees, and more can be incorporated into the closing costs you are expected to pay. Below are all of the loan-related fees that will potentially be included at the time of closing.
The application fee: This is the cost of the application for the loan, which includes credit checks and various administrative expenses. This fee will vary based on the lender you choose and the work involved with processing the application.
The assumption fee: If you are taking over the remaining balance of the seller’s mortgage, you may be charged an additional fee based on that amount.
The attorney fees: If you have a real estate attorney in St. Johns County working with you, the fees may be included in the closing costs.
The prepaid interest fee: Many lenders will require the buyer to pay the interest on the mortgage that accrues during the date of settlement and the first monthly payment. This fee will vary based on the size of your loan.
The loan origination fee: Also known as an underwriting fee, administrative fee, or processing fee, this amount is charged by the lender for evaluating and preparing the loan.
The mortgage broker fee: If you are working with a mortgage broker, their fee will be incorporated into the closing costs. This tends to be 1-2% of the home’s price.