Fees For Closing And Services

These are fees typically paid on the day your home purchase or refinance is final. If you are buying a home, some of these fees may be negotiable with the seller — he or she may agree to share some closing costs. If so, make sure this agreement appears in the purchase contract you sign.

Fees for closing and services include:

• Real Estate Agent Commission — The amount you've negotiated to pay a real estate agent or broker to represent you when you buy a house. Traditionally, the home seller pays commissions associated with the marketing of the property.
• Origination Fee — The fee charged by the lender for processing your loan.
• Loan Discount or "Points" — A fee paid in return for a lower interest rate over the life of a loan. A point is equal to 1% of the amount of money you are borrowing. The longer you plan to keep your home loan, the more economical it can be to pay points in exchange for a lower interest rate and monthly payment.
• Settlement or Closing Fee — The fee paid to the closing agent to act as a neutral third party who handles the finalization of your loan and the purchase of a home.
• Title Insurance Costs — To issue title insurance, government and other records must be searched to make sure no one else has a legal claim to the home. A title insurance binder and an insurance policy are also required. You are charged separate fees or an all-in-one amount for these costs. The title insurance policy you are required to purchase protects the lender. It may be wise to pay a little bit extra and take out a separate title insurance policy that protects you.
• Attorney's Fees — If you live in an area where it’s customary for an attorney to perform title work or other parts of a home purchase, there is a fee for legal services.
• Property Taxes — Property tax must be paid annually. If you purchase a home in the middle of the year, you may be asked to share some of the year's taxes with the home seller. The closing agent prorates the amount you owe so you only pay your fair share.
• City, County and State Charges — The local governments where you live may charge taxes and fees to record and stamp documents such as deeds and loan paperwork.
• Survey Fee — The cost of surveying the property to determine the size of the lot your home is on, or, for example, whether a public utility company has a right to access the property.
• Pest Inspection — If an appraiser notices signs your home may have termites or other pests, or if the laws in your area require it, a pest inspection and report must be done. Fees for these services are included in closing costs.
• Flood Check Fee — Lenders must check Federal Flood Maps to find out if your home requires flood insurance. This fee covers the map search and issuing a certificate.

Countrywide Bank’s Full Spectrum Lending Division can also assist you with homeowner insurance through Countrywide Insurance Services, Inc. Information about LandSafe, a closing services company, is also available.

If you have any questions about home loans, feel free to give one of our helpful Home Loan Consultants a call at 1-800-909-8217. It’s a FREE call with absolutely no obligation. Whether you’re refinancing or buying a home, they can answer any questions and are happy to guide you through the process.