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Closing & Title Information

Appraisal Fee – Cost for professional evaluation of the property’s market value based on comparable sales, improvements on the property and location. (Fee usually set by the appraiser}

Assumption Transfer Fee – Fee is charged to the buyer, assessed by the lender for buyer to assume present loan.

Closing Disclosure (CD) – Combines and replaces HUD-1 Settlement Statement and final Truth-in-Lending (TIL)

Consummation – Closing/Settlement

Credit Report – A report of your credit history.

Discount Points – Points lender may charge to increase the investor’s yield. May be paid by either buyer or seller. The number of discount points depends on the rate quoted and the current market rates.

Escrow Fee – TitIe Company’s service fee for acting as an escrow agent to carry out contract instructions, obtaining execution, and recording of necessary documents; disbursing sale proceeds usually split between buyer and seller.

Filing Fees/Recording Fees – Fees for recording  documents  in  Public Records fee is determined by the number of pages fled per document

Hazard Insurance – Fire and extended coverage casualty insurance protects property and contents in case of loss; required by  lender for at least the loan amount.

Inspections – An examination of the property for various reasons such as termite inspections, mechanical inspections, roof inspections; parties may also require follow-up inspections after required repairs are completed.

Interest – Interest due on Seller’s existing mortgage through date    of    Day-off    received.    Interest    is    usually    paid   in    arrears. Interest also includes prepaid interest on the buyer‘s loan for the remainder of the month in which closing occurs.

Loan Application Fee – Fee paid to the lender at time of application; check with your lender.

Loan Estimate (LE) – Combines and replaces the  Good  Faith Estimate (GFE) and initial Truth-in-Lending (TIL) statement

Miscellaneous Lender Fees – May include fees for underwriting, processing, tax service fee, warehousing, etc., varies with each lender. Check with lender for disclosure and explanation.

Loan Policy- Policy insuring lender of validity and priority of its lien

Origination Fee – Lender may  charge  purchaser  a  fee to  originate a new loan.

Owner‘s Policy – Policy that indemnities the buyer against losses for covered defects in titIe. {Premium is set by the Commissioner of the Texas Department of Insurance)

Prepayment Penalty – A fee charged for early payoff of the Seller‘s existing mortgage loan. If the penalty applies, it will be stated in the existing mortgage instruments

PMI Premium/MIP Premium(PMI – Private Mortgage Insurance – conventional loans, MIP – Mortgage Insurance Protection – FHA loans) Insures lender against loss in the event of default by the borrower.

Prorated Taxes –  Taxes  are  prorated  with  the  Seller  paying  taxes from January 1 ” through the closing date, and buyer paying the remainder. Figures are usually based on actual taxes charged the previous year. Any shortages or averages due  at  the  end  of  the existing year are between Buyer and Seller.

Restrictions – Recorded documents that restrict and limit the use of a defined property.

Survey – A Statement (drawing) showing the improvements and corners, distances, and directions of the boundaries of a tract of land along with easements, encroachments, etc., as may be required  in the contract.

Tax Search Certificates – Certificate obtained to  determine  any unpaid property taxes or assessments that may constitute liens against the property.