Page 25 - The Latest Homebuying Guide
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Prepaid Interest: This covers any interest that will accrue between
closing and the date of your first mortgage payment.
Private Mortgage Insurance (PMI): This insurance protects the
lender and is required If you are making a down payment that’s
less than 20% of the home’s purchase price.
Property Tax: This covers taxes imposed on your home by the local
government.
Recording Fees: A fee charged by your city or county to put your
property among public land records.
Survey Fee: Survey companies ensure that all lines and boundaries
are where they are supposed to be; ensuring that you get all the
lands you are entitled to.
Title Company Title Search Fee: The title company research en-
sures that no one else has a claim to the property.
Transfer Taxes: This is the tax paid when the title passes from
seller to buyer.
VA Funding Fee: If you are a Veteran, there is a one-time upfront
fee that is charged by the VA for processing. This can also be
added to your loan if you choose.
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