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Serving Fayetteville, Ft. Bragg, Pope AFB & Surrounding Areas
Since 1951

Each office independently owned and operated.

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Mortgage Loan Closing Costs

The Real Estate Settlement Procedures Act [RESPA] and U.S. Department of Housing and Urban Development [HUD] Regulation X requires lenders provide mortgage applicants of a federally related mortgage loan with a good faith estimate of closing costs within three days of receiving or preparing the application. The good faith estimate should show the amount of or range of charges for the specific settlement services the borrower is likely to incur in connection with the settlement. 

Because the good faith estimate discloses settlement charges rather than loan costs, it is not necessarily based on loan specific disclosures. The essential information in the disclosure relates to the charges for settlement services.   For example, if the applicant changes the request from an FHA loan to a conventional loan, there may be difference fees in the settlement services.

Some of the more common charges you may see are:

1. Loan Origination Fee: Usually 1% of the loan
2. Loan Discount Points: A form of accelerated interest; each point is 1% of the loan amount (who pays points is negotiable between buyer and seller)
3. Appraisal Fee: The charge to have a professional appraiser certify the value of the property being purchased
4. Credit Report: The cost of getting a credit history from a credit service
5. Tax Service Fee, Document Preparation Fee: Charges to set up a tax escrow account and prepare mortgage documents
6. Attorney Fees: The settlement agent's charges for processing the sale closing;
7. Title Insurance: Charges for insurance to guarantee the validity of the property's title for the lender; buyers can also purchase title insurance at settlement to protect their interests
8. Recording Fees, Tax Stamps:  Local charges to officially record the deed and mortgage, and transfer taxes
9. Survey: The charge to verify the boundaries of the property being purchased

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Sample NC Real Estate Forms…Contracts, addendums & more

   These forms are in Adobe Portable Document Format (PDF). To view them you must have the free Adobe Acrobat Reader installed on your computer.