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809 - Tax Related Service Fee - This is a fee to the lender for handling matters related to property taxes
810 - Processing Fee
- This fee is charged for collecting all your documentation and everything else needed to put together a package to send to the underwriter.
811 - Underwriting Fee
- This is the fee charged to underwrite the package obtained from the processing process. A underwriter will make sure the package meets the loan standards and issue a final approval.
812 - Wire Transfer Fee - This is the fee charged for wiring funds to the title company just
before close of escrow.
FEES TO BE PAID IN ADVANCE
901 - Interest for days X $ per day
- This is interest from the close of escrow until the 1st of the next month. Mortgage payments are paid at the end of the month instead of the start like a rental. You will pay the prorated interest of the loan from the day of closing until the end of the month, then the next month payment will be due at the end of that following month.
902 - Mortgage Insurance Premium
- If your loan has mortgage insurance you will have to prepay the amount of that Premium just like interest on the loan.
903 - Hazard Insurance Premium
- This is the prepayment homeowners insurance on your property. Homeowners insurance is typically paid once a year.
905 - VA Funding Fee
- This is a fee charged by the Veterans Administration. It is like prepaid mortgage insurance. Today the amount is 2.15% of the loan amount and 3.3% if you already have a VA loan.
RESERVES
1001 - Hazard Insurance Premiums # months @ $ per month
- This goes into your escrow account to make sure there is enough money to pay for your homeowners insurance the next time it comes due.
1002 - Mortgage Ins. Premium Reserves months @ $ per month
- This goes into you escrow account to make sure there is enough money to pay the mortgage insurance bills when they are due.
1003 - School Tax months @ $ per month
- This is the advance payment of the school tax expenses incurred over the coming months
1004 - Taxes and Assessment Reserves months @ $ per month
- This goes into your escrow account to make sure there is enough money to pay for your property taxes the next time it is due.
1005 - Flood Insurance Reserves months @ $ per month months
- This is the advance payment of the flood insurance expenses that you will incur over the coming months
TITLE CHARGES
1101 - Escrow or Closing Fee
- This fee pays the title company for their services. The title company is a completely neutral party that handles the exchange between the different parties of a real estate transaction which can include a lender, buyer, seller, notary, agents, and so on
1105 - Document Preparation Fee
- This fee is for preparing and reviewing the loan documents and ensuring that they are accurate prior to sending them to the title company for signing
1106 - Notary Fees
- This is the fee for having the legal documents notarized for recording purposes
1107 - Attorney Fees
- In Arizona there normally is not an Attorney but if for some reason you have one this would be payment for their services.
1108 - Title Insurance
- This pays the title company for insuring the title of the property. It is used to protect disputes against the ownership of the property
GOVERNMENT CHARGES
1201 - Recording Fees
- This is the fee for recording legal documents with the Cochise county recorders office.
1202 - City/County Tax/Stamps - Possible government charge
1203 - State Tax/Stamps - Possible government charge
ADDITIONAL CHARGES
1302 - Pest Inspection
- This is the fee charged for the the termite inspector to check for termites, treat for termites and provide a clear termite report.
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