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  • Mortgage Fees: What to Expect

    Ever wonder what that long list of mortgage fees covers? The possible mortgage fees are numerous, but they can be lumped into several categories for clarity.

    Third-party Mortgage Related Fees: 

    • Appraisal fee: This one-time fee pays for an appraisal, that is, a statement of the property value. The amount of the fee varies based on the location and type of the property.
    • Credit report: This one-time fee covers the cost of your credit report, which is run by an independent credit-reporting agency.
    • Application fee: This fee is assessed to ensure loan commitment.
    • Flood determination fee: This flat fee is assessed for determining the flood risk of the property.
    • Tax related service fee: This flat fee covers an assessment of your tax situation for funding purposes.
    • Recording fee: This fee is paid to the county for recording documents.

    Lender Fees: 

    • Funding fee  
    • Underwriting fee  
    • Processing fee  

    All the above fees are paid directly to the lender to compensate for the time and resources involved in processing the loan.

    Title Fees: 

    • Title insurance: This is a contract of indemnity, which guarantees that the title to the property is true and correct.
    • Document preparation fee: This one-time fee covers the preparation of the final legal papers.
    • Notary fee: This fee covers the cost to guarantee your signature.
    • Escrow fee: This fee is charged by the title company to handle the funds and documents of the buyers and sellers. The fee varies based on the loan amount.
    • Courier fee: This fee only applies if documentation needs to be transferred to the title company using a courier service. This fee depends on the circumstances and is thus not always required.
    • Wire fee: This covers the cost for transferring the loan amount from Tech CU.

    To help you estimate the total cost of your home purchase, you will receive a complete list of all fees and costs just a few days after your application is received by your lender. It is helpful to keep in mind that not all lender fees are alike. And, because Tech CU has some of the lowest fees in the business, we welcome you to compare our mortgage lending fees to those of other lenders.