Do you have a question?

A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. These fees vary from state to state and also from lender to lender. Any lender or broker should be able to give you an estimate of their fees, but it is more difficult to tell which lenders have done their homework and are providing a complete and accurate estimate. We take quotes very seriously. We’ve completed the research necessary to make sure that our fee quotes are accurate to the city level – and that is no easy task!

To assist you in evaluating our fees, we’ve grouped them as follows:

Third Party Fees

Fees that we consider third party fees include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees.

Third party fees are fees that we’ll collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees.

Typically, you’ll see some minor variances in third party fees from lender to lender since a lender may have negotiated a special charge from a provider they use often or chooses a provider that offers nationwide coverage at a flat rate. You may also see that some lenders absorb minor third party fees such as the flood certification fee, the tax service fee, or courier/mailing fees.

Taxes and other unavoidables

Fees that we consider to be taxes and other unavoidables include:

• State/Local Taxes, and
• Recording Fees

These fees will most likely have to be paid regardless of the lender you choose. If some lenders don’t quote you fees that include taxes and other unavoidable fees, don’t assume that you won’t have to pay it. It probably means that the lender who doesn’t tell you about the fee hasn’t done the research necessary to provide accurate closing costs.

Lender Fees

Fees such as points, document preparation fees, and loan processing fees are retained by the lender and are used to provide you with the lowest rates possible. This is the category of fees that you should compare very closely from lender to lender before making a decision.

Required Advances

You may be asked to prepay some items at closing that will actually be due in the future. These fees are sometimes referred to as prepaid items.

One of the more common required advances is called “per diem interest” or “interest due at closing.” All of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you’ll pay interest, from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we’ll collect interest from June 15 through June 30 at closing. This also means that you won’t make your first mortgage payment until August 1. This type of charge should not vary from lender to lender, and does not need to be considered when comparing lenders. All lenders will charge you interest beginning on the day the loan funds are disbursed. It is simply a matter of when it will be collected.

If an escrow or impound account will be established, you will make an initial deposit into the escrow account at closing so that sufficient funds are available to pay the bills when they become due.

If your loan requires mortgage insurance, we will arrange for the coverage during the underwriting process. Whether or not you must purchase mortgage insurance depends on the size of the down payment you make.

If your loan is a purchase, you’ll also need to pay for your first year’s homeowner’s insurance premium prior to closing. We consider this to be a required advance.

Whether you’re purchasing or refinancing, we’re certain you’ll find our service amazing! If you’ll be purchasing but haven’t found the perfect home yet, contact a loan originator and get pre-qualified so you can go house hunting with confidence.

1. First, you’ll complete our online application
   The application will ask you questions about the home and your finances and takes less than 20 minutes to complete.
2. After completing your application, a Loan Originator will contact you to introduce himself or herself and to answer any questions you may have. Your Loan Originator is a mortgage expert and will provide help and guidance along the way.
3. If you are purchasing a new home, the Loan Originator will also contact the Real Estate Broker or the seller so that they’ll know whom to contact with questions.
4. We’ll send you an application package including a Loan Estimate. The application package will be sent to you and will contain papers for you to sign and a list of items we’ll need to verify the information you provided about your finances during the online application. Upon review of the loan estimate you will determine if you wish to proceed with the application; at which time you will pay the application fee.
5. We’ll order the appraisal from a licensed appraiser who is familiar with home values in your area. Depending on your finances and the loan amount requested, different types of appraisals are used. Sometimes the appraiser will need to view the home. Sometimes they are able to do their evaluation from the street.
6. We’ll work with your attorney to coordinate your closing date. After we have received the application package back from you and the appraisal, we will complete the underwriting of your application.  When your loan is approved a commitment letter will be issued to you.  If you are purchasing a home your attorney will work with the seller’s attorney to schedule the closing.

That’s all there is to it – You’re on your way to the most convenient home loan ever!

Depending on the loan product applied for, the closing will take place at the office of the buyer’s or seller’s attorney. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you.  Refinances are closed at your attorney’s office and equity loans and lines are closed at the bank because an attorney is not required.

During the closing you will be reviewing and signing several loan papers. The closing attorney or bank closing agent conducting the closing should be able to answer any questions you have or you can feel free to contact your Loan Originators if you prefer.

Just to make sure there are no surprises at closing, your attorney will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.

The most important documents you will be signing at the closing include:

Loan Closing Disclosure

This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the settlement statement will also include a listing of any fees related to the transaction between you and the seller. If this loan will be a refinance, the settlement statement will show the pay off amounts of any mortgages that will be paid in full with your new loan. Most items on the statement are numbered according to a standardized system used by all lenders. These numbers will correspond to the numbers listed on the Loan Estimate that will be provided in your application package. This document is also commonly known as the closing statement and both the buyer and seller must sign this document.

Final Loan Estimate

This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees. It is exactly the same as the Loan Estimate that you received immediately after your initial application, except it has been updated to reflect the final rate and fee information. Federal law requires that all lenders provide you with this document at closing.

Note

This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Mortgage

This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower.

If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won’t be disbursed until three business days have passed. The closing agent will provide more details at the closing.