Page 13 - Jonathan Gotcher Buyers Guide

E Ex xp pl la an na at ti io on n o of f E Es st ti im ma at te ed d C Co os st ts s

Your escrow officer will explain your closing settlement (pre-audit) when you prepare to close your
transaction and take ownership of your new home. You may qualify for Pioneer Title’s discounted rates. Consult
your Realtor or your Pioneer Title Representative.

ESCROW AND TITLE FEES:

ESCROW FEE: Fee charged to handle the paperwork in transferring title, necessary
adjustments and effecting the proper distribution of funds. Fee is
based on the sales price, usually split between the seller and purchaser.
New VA loan, seller must pay.

OWNERS TITLE POLICY: Title insurance protection showing that the purchaser has marketable
title. Fee is based on the sales price and usually paid by the seller.

RECORDING AND
AFFIDAVIT FEES: Paid to the County Recorder’s Office as a fee for recording documents.
Fee is based on the number of pages in each document. Purchaser pays
For recording the Deed and the Deed of Trust. Seller pays for the Affidavit
of Property Value and any release of existing loans.

ALTA LOAN POLICY: Extended coverage title insurance policy issued for the benefit of the
Lender and any future assignees of the loan obligation. Coverage is
Limited to the amount of the outstanding loan balance.

STANDARD LOAN POLICY: Title insurance to a lender insuring the priority and validity of its lien.
This policy can be issued to a seller in a carryback situation.

LENDERS FEES (NEW AND EXISTING):

LOAN ORIGINATION FEE: Lender’s fee for processing the paperwork involved in new loan. It is
Usually 1% of the new loan amount and normally paid by the purchaser.

LOAN DISCOUNT POINTS: This is sometimes referred to as “points” or “discount points”. It is always
a percentage of the new loan amount. The fee will vary, based on the
market rate of the money.

TAX SERVICE CONTRACT: Required by institutional lenders so that tax billings and notifications are
mailed directly to the lender. Advises them of new assessments and any
delinquent taxes. Also required when title company collects for impound
accounts.

(Continued on next page)
Pioneer Title Agency
Pioneer Title Agency
COMMITMENT TO SERVICE
COMMITMENT TO SERVICE

Page 11