Mortgage Guide

How to get a home loan

Closing Costs: Services you can shop for in a home mortgage

Based on your specific situation, there are services for closing costs that are required for processing your home loan. And you don’t have to wait to get moving on these - you can start shopping right now. All the services will be itemized in Section C of your Loan Estimate

Taking a quick moment to review your loan estimate to see what services you can shop for will save you time down the road.

Closing Services you can shop for:

  • Architectural/Engineering Fee - this fee is typical in a renovation transaction such as 203k or FNMA Homestyle.
  • Pest Inspection - fee is written into a sales contract or on the appraisal if there was evidence of infestation, and the appraiser reported it.
  • Survey Fee - not to be confused with appraisals. The seller typically pays for a survey of the property, which will be written into the sales contract.
  • Attorney Fees - the fee the attorney charges you will be paid at the time of closing.

Title Services - Common fees to be aware of:

  • Lenders Title Insurance Fee - fee for a lender requirement in a purchase and refinance transaction.
  • Insurance Binder Fee - fee committing the borrower to issue a title insurance policy at a future date.
  • Abstract or Search Fee - prior to preparing the title commitment, an abstract will include the chain of title, past deeds, liens, mortgages, easements, and any judgments.                                        
  • Chain of Title Fee - fee for a lender requirement in a purchase transaction.
  • Closing Protection Letter Fee - fee for a lender requirement in a purchase and refinance transaction.
  • Wire Transfer Fee - fee for a Lender requirement in a purchase and refinance transaction.
  • Notary Fees - fee if a notary is needed to meet you at your choice of location for your refinance closing.
  • Recording Service Fee - government fee for recording the mortgage and deed.               
  • Settlement Fee - closing fee the title company charges to close your loan.
  • Search Fee - attorneys charge for the service of running a title search fee, usually on a purchase.
  • Courier Fee - applies if a courier was used to deliver documents.
  • Signing Agent Fee - fee the closing agent charges.
  • Document Preparation Fee - processing fee the title company charges.
  • Tax Related Service Fee - typically paid by the buyer at the time of the closing on a home purchase. If the lender uses a tax service agency, this fee would be paid to the lender.                 
  • Endorsements Fee - title endorsements protects the insured owner or lender against the risk of a particular matter that is beyond the basic coverage of a standard policy.
  • TIEFF Fee - stands for Title Insurance Enforcement Fund Fee. The title company can charge this fee to provide them with supplemental funding for the company that is related to the title insurance.
  • E-Doc Delivery Fee- for electronically recordation of documents.
  • Title Insurance Fee - Insurance Policy Fee.                                                   
  • Environmental Fee - for environmental protection liens on the property.
  • Update Fee - in a home purchase, this will be charged when the documents need to be updated with the lender's information.
  • Examination Fee- this fee is typically charged by the attorney representing the home buyer in the mortgage transaction. The attorney will examine the title documentation to determine if there are any title issues such as breaks in the chain of title, liens or judgments that have been recorded. This also includes the history of all recorded deeds in the past. This fee covers the title search and clearing any particular findings.  
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