Buyer’s Estimated Charges
Download a copy of the Buyers Estimated Charges.
Please note, all charges are estimates and subject to change. Please contact your lender for actual charges.
Buyer’s Charge Definitions
Amortization Schedule – Schedule Showing principal and interest payments throughout the life of the loan.
Attorney’s Fee – Charge for representation by legal counsel of choice.
Commission – Fee paid by seller to Real Estate agents for sale of property.
Discount Points – Points lender charges to increase the investor’s yield. May be paid by either buyer and/or seller on conventional loans and FHA loan. Must be paid by seller on VA loans. Number of points fluctuates with mortgage.
Document Preparation Fee - Charges by independent attorney for preparation of legal documents.
Escrow Fee – Charges by title company to service transaction and to escrow money and documents. Amount varies with company. Usually split equally between buyer and seller.
Flood Certificate – Required by lender to obtain information designating the status of subject property in regards to flood plains.
Inspection Fee – As required by lender to satisfy Property Condition Addendum. May be a negotiated requirement on a cash contract.
Messenger Fee – Covers delivery charges incurred.
Owner’s Title Policy - insures buyer against loss due to any defect of the title not excepted to or excluded from the policy.
Payoff – amount needed to pay off existing lien on property being sold. Amount includes principal plus accrued interest through the date of funding.
Recording Fee – Charged by County Clerk to record documents in the public records. Charges are based on per page recorded.
Repairs – Any repairs required by lender and/or warranted by inspections that are to be paid at closing.
Tax Certificates – Issued by taxing authorities showing the amount of the current year’s taxes and the last date that taxes were paid.
Tax Proration – Seller pays buyer taxes from January 1 through the day of closing.
Tax Service Fee – Fee required by lender for collection and disbursement of tax escrow by a servicing company.
Termite Inspection Fee - Required by lender to show property free and clear of active termites. May be a negotiated requirement on a cash contract.
Underwriting Fee – Fee lender charges for underwriting the loans on behalf of the investor.
Warehouse Fee – Charged by lender to cover his cost in borrowing funds for a short term in order to fund a mortgage, prior to selling the mortgage to an investor.
