How much is it going to cost me?

It's important to have an ideal of the cost associated with your home purchase

Some will be out of pocket while others can be included in your home loan.

Out of Pocket

  • Down Payment - the amount will vary depending on the program and your qualifications but the amount will be due at closing. Usually deposits can be counted toward your down payment requirements.

  • Appraisal - cost for third party appraiser to determine value of home

  • Inspections - check condition of home and advise on remediation or repairs

  • Upfront fees - such as credit reports or lock in fees charges by a lender

Included in loan

  • Origination fees - set cost a lender charges to originate a loan

  • Points - cost charged in exchange for a lower than qualifying rate

  • Escrows - amount withheld monthly to pay taxes and insurance when due

  • Prepaids - amount collected upfront to pay prorated amount of current taxes and annual homeowners insurance premium

  • Program Charges - Certain programs will have an upfront fee included such FHA Upfront Mortgage Insurance Premium and VA Funding Fee

  • Lender fees - charges by lender for services such as processing or underwriting

  • Lender Credit - credit from lender in exchange for a higher than qualifying rate. Useful to offset closing cost or loan fees.

  • Closing Cost - of what is being charged in association of the loan including settlement/attorney/govt recording charges minus any credits or concession

It doesn't matter what the loan fee is called it still is being financed into you home loan.

Review your paperwork

To know what you are paying for and what is actually being charged. Different banks will have different charges, fees, and amounts included in their offer. Pay attention and review your loan estimate. It doesn't matter what the loan fee is called it still is being financed into you home loan.