There are a variety of expenses associated with buying real estate. These are commonly called closing costs, but there are actually different types of fees that fall into that category. This article provides a list of lender closing fees in Philadelphia PA.
Lender Closing Fees
Points
Points are a method for borrowers to get a lower interest rate. It involves paying interest up-front to obtain lower payments for the term of the mortgage. This option may be useful for buyers who need a lower payment in order to qualify.
Origination Charge
Origination fees are specific to a lender. It typically covers a lender’s cost to complete the loan for a Philadelphia PA buyer.
Appraisal Charge
An appraisal is required by a lender but performed by an independent professional. Appraisals verify the value of the real estate and its condition. A mortgage will not receive final approval without a satisfactory appraisal.
Tax Service Fee
Philadelphia PA real estate taxes may be included in your monthly mortgage payment. The lender obtains the funds from you on a monthly basis and places it in an escrow account. When the tax is due, payment is made from that escrow account. Many mortgage companies will charge a one-time fee to set up this tax service.
Flood Certificate
Philadelphia PA homes situated within a flood zone will require flood insurance. Mortgage companies order a flood certificate to make that determination. Flood certificates are always charged to the home owner.
Credit Report
Credit reports are another typical lender closing fees. Credit reports are how they determine credit worthiness and applicable rates. There is a cost associated with requesting credit reports from the 3 major credit bureaus. Lenders will often pass on this expense to the borrower.
Additional Lender Closing Fees
The lender closing fees detailed above are only a few of the actual charges that may be imposed by your lender. For a comprehensive list of possible fees that you may be responsible for when purchasing Philadelphia PA homes, or for help with other real estate or mortgage questions, contact Diana Escobar-Wachter at Access Abstract Corporation by calling 610-461-2910 or emailing wachterd@accessabstract.com.
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