Closing Costs in Parkland, FL

The fee charged by the lender for the processing of your mortgage application. Inquire about the application process before you try to get a mortgage.

The cost of having an attorney draft and examine the paperwork involved in buying a home. Legal representation is optional during a real estate transaction in some states.

Depending on state legislation, the closing agent (title firm, escrow business, or attorney) is compensated for their services with this fee, also known as an escrow fee.

Closing Costs in FL include this fee which is used to speed up the delivery of signed documents.

A lender may charge you a fee to obtain your credit report from any of the three leading credit agencies — Experian, Equifax, and TransUnion. Some financial institutions may waive this cost because they are offered a rebate by credit bureaus.

When you close on a home purchase, specific lenders will require you to fund an escrow account with the equivalent of two months’ worth of payments for your mortgage insurance and property taxes.

This is the cost of hiring a qualified professional to check for flood damage. The purpose of the inspection is to establish whether or not the property is located in a high-risk flood area and needs insurance coverage. Inspecting the property at regular intervals to track any changes in its flood status is included in the cost.

Lenders typically require proof that the first year’s premium for homeowners insurance has been paid in full before closing.

This is the cost of hiring a trained professional to inspect your home for toxic lead-based paint.

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Lenders are safeguarded against ownership disputes and liens not uncovered in the title search by paying a one-time upfront payment of the title insurance.

Lenders are safeguarded against ownership disputes and liens not uncovered in the title search by paying a one-time upfront payment of the title insurance.

This fee, typically 1% of the loan amount, goes toward the lender’s overhead in approving and processing your mortgage. Some lenders use a higher interest rate in place of origination fees.

This coverage protects you in case someone contests your ownership of a residence. It is optional, but legal professionals strongly advise that home buyers purchase this because having no title insurance exposes you to significant risk in the event that a title defect is present.

This covers the price of a termite, dry rot, or other pest inspection performed by an expert. Inspections are necessary for some jurisdictions and some types of government-insured loans.

These are a one-time, up-front fee paid to the lender in exchange for a lower interest rate and monthly payment. Points are expressed as a percentage of the loan amount. Due to the current low-interest rate environment for mortgages, paying points may not yield significant savings.

Prepaid Daily Interest Charges are the sum of money you pay at closing to cover the interest on your mortgage from the closing date until the first payment is due.

You must pay this amount to a third-party property assessment firm to get an accurate estimate of your home’s valuation and loan-to-value (LTV) ratio.

If any local property taxes are outstanding, they must be paid at closing or within 60 days of the acquisition date.

Lenders sometimes impose rate lock fees to lock in a specific interest rate for a certain length, usually from pre-approval until closing. You can safeguard yourself from an unexpected increase in interest rates by locking in a current rate.

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This fee is charged by state and local agencies for registering a property’s transfer of ownership.

This is paid to the survey company that verifies and confirms your property lines before you close.

The fee charged by a title company for researching property documents held by the government. A title company will check these documents to ensure that the property is free and clear of any claims to ownership or liens.

Transfer tax refers to taxes paid when the title of a property is transferred to the new owner’s name.

Lenders will typically impose an underwriting fee to cover the costs associated with checking your finances, job, and credit before extending final loan approval.