COURSE INDEXPreliminary Questions
Home Buying Start & Registration
Budgeting To Buy a Home
Find Your First House
Inspect Before You Buy
Shop For a Mortgage Loan
Home Mortgage Loan Process
Credit Score and Credit Report
Home Mortgage Loan Closing
Being a Home Owner
Mortgage Quote Request
Get Started Below!
L. Settlement Charges
Total Sales / Broker’s Commission based on sales price:
Division of Commission (line 700) as follows:
Both of these line items indicate who is receiving the division of
the commission paid and how much each one is getting.
Commission paid at Settlement:
The amount entered on this
line is the amount of the real estate commission paid by the seller.
It would be the total of lines 701 and 702. This amount is most often shown in the
column titled: “Paid from Seller’s
Funds at Settlement.”
Extra blank line for additional commissions paid.
Items Payable in Connection With Loan
801) Loan Origination Fee %
This is the fee the bank
or mortgage company is charging the borrowers for processing and making the
mortgage loan. This fee is a percentage of the loan amount.
802) Loan Discount %
You should have discussed
discount points when you discussed the loan application and selecting a lender
earlier in this course. The discount
points you agree to pay are shown on this line.
This would be shown in the column labeled “Paid from Borrower’s Funds
at Settlement.” Sometimes the seller
will agree to pay discount points, but most often it is a buyer’s expense.
803) Appraisal Fee
There is most often a charge
for an appraisal. Before you received the approval of your
loan, the financial institution or mortgage company had to have an appraisal
to determine the fair market value of the house you are buying. The fee is generally paid by the buyer,
unless agreed to differently in the contract.
804) Credit Report to
There is most often a charge
for a credit report. Before the financial institution or mortgage
company could approve your loan, they had to determine your credit-worthiness.
The charge for that credit report is shown on this line.
It is most often a buyer’s expense, however, sometimes the seller agrees
to pay for this item.
Lender’s Inspection Fee:
If, prior to closing on this
loan, there are repair requirements shown in the contract and / or the appraisal,
the lender must ascertain that those repairs have been made. The lender is allowed to charge a fee
for it’s time and travel expense. That
fee is shown on this line. It is
generally a buyer’s expense, but the seller may agree to pay the fee prior to
Mortgage Insurance Application Fee:
Most lenders require mortgage
insurance on the note and mortgage you are signing when the downpayment is less
than 20%. The collateral for this loan is the home
you are buying. The mortgage insurance
protects the lender against financial loss if the mortgage is foreclosed.
If the buyer of this house
is not getting a new loan, but is assuming the loan balance of the old mortgage
that belongs to the seller, then an assumption fee is allowed to be charged
to the buyer. The financial institution or mortgage
company receives this fee.
808-811) Extra blank line for additional line items that may be charged at closing.
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Table of Contents | Homebuyer Course Start Page | Find A Realtor | Budgeting To Buy a Home | Neighborhoods | Find Your First House | Inspect Before You Buy | Shop For a Mortgage Loan | Mortgage Home Loan Process | Credit Score and Credit Report | Home Mortgage Loan Closing | Being a Home Owner
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