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All residential real estate transactions incur costs. Many of the closing costs associated with buying a home are associated with getting the mortgage. Since Cha Mortgage Company has extensive experience with closings and mortgages, we can help you understand your closing costs.
LOAN ESTIMATE (Also known as the 'LE')
Three business days after you submit your application (or identify a property for a home purchase) federal law requires us to provide you with the "Loan Estimate" of your closing costs and prepaid items. Closing costs includes Loan Origination Fee, Discount Points, Administration Fee, Appraisal Fee, Tax Service Fee, Flood Certification Fee and other title and escrow fees. Prepaid items includes such things as property taxes, prepaid interest, homeowner's insurance and homeowner's association (HOA) dues. The Loan Estimate includes an estimate of fees we obtain from the various third parties involved in the transaction. While our LEs are very precise, we cannot estimate costs to the penny.
We've provided a general list of closing costs below. Cha Mortgage Company doesn't believe in surprises so if your costs change, you will be notified immediately.
The only cost you typically pay upfront on a mortgage is the Appraisal Fee and that can run anywhere from $500-$800 depending on the type of appraisal, complexity and turn-time. The cost of the appraisal is collected prior to ordering the appraisal and becomes nonrefundable once the appraisal has taken place. Sometimes, the Appraiser will charge a portion of the fee if work was performed prior to the inspection. Appraisal fees can not be collected until you have expressed an Intent to Proceed with the Loan Application and a Loan Estimate has been provided to you.
Standard Closing Costs
- Appraisal Fee
- Credit Report
- Tax Service Fee
- Flood Determination Fee
- Settlement/Escrow Fee
- Title Insurance
- Recording Fees
- Transfer Taxes
- Government Service Fee
- Endorsement to Title
- Origination Fee
- Admin Fee
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Private Mortgage Insurance (PMI)
- Property Taxes
- Homeowner's Insurance
- Homeowner's Association Dues
- Prepaid Interest
At Cha Mortgage Company, we answer questions about closing costs every day. Give us a call: 503-753-7577.