Our Fees
Origination Fees & Discount Points
The origination fee is charged for the lender’s work in evaluating and preparing your mortgage loan. Discount points are a fee you can pay to “buy” a lower interest rate – the more points paid, the lower the rate. One point equals one percent of the loan amount. For example, one point on a $300,000 loan would be $3,000. In some cases – especially with refinances – you can add the points to your loan amount, thus not having to pay points out of your pocket. On average we will charge anywhere from 1 to 2 points per loan.
Appraisal Fee
This fee pays for an independent appraisal of the subject property. The lender requires this opinion or estimate of the market value of the subject property. We require that all appraisals are completed by an MAI appraiser. If you have an appraisal that has been completed we reserve the right to refuse your appraisal and request a new appraisal. On average the appraisal will cost you anywhere from $2,500 to $7,500.
Credit Report:
A credit score (link) number is often called a FICO score. The score distills all of the information in your credit report (link), using a formula to calculate a single number that indicates your credit worthiness. Each credit report is only valid for 60 days. We will repull a new credit report every 60 days until the loan closes. We charge $150 for a commercial credit report.
Underwriting and Documents Fees
Lenders must underwrite your file in order to see if it meets their lending requirements and the requirements of the companies who ultimately purchase loans for investment purposes. This requires examing all of the data presented. On average each loan will require approximately 100 hours of work to complete. We charge $1500 to $5000 depending on loan amount and complexity of loan request.
Processing Fee
This fee is for setting up your file, all internal work and for procuring all documentation required to make your loan viable for the lender criteria, and for following up to be sure your loan funds at the proper loan amount, fees and closing date. We charge $500 to $750 per file.
Title and Escrow fees
These fees may vary by jurisdiction; often includes the cost of title insurance or title search and attorney’s title opinion; may cover premiums for the lender’s policy (insuring that its mortgage is a first lien on the property) and a separate policy insuring the buyer’s title.
Transfer Tax
Transfer taxes are state and local taxes that are assessed on real property when ownership of the property is transferred between parties. Documentary stamps are purchased covering such charges and are place on the deed.
Property Survey
The surveyor determines whether the subject property is within the property borders, whether there are any encroachments on the property by neighbors and the extent to which any easements on the property may affect legal title.
Prepaid Interest
The interest on your loan calculated on a per day basis and paid in advance from the day of your loan closing through the last day of the month in which your closing takes place. This enables the lender to make payments for your loan due on the 1st of the month.
Insurance: Hail, Windstorm & Hazard
A form or protection against physical damage to the property by fire, wind, vandalism and other causes. Your lender will expect you to have a policy in effect at closing.
