Has anybody ever told you that the mortgage process is transparent and seamless? No? With good reason; it isn't. This article aims to help with information on common fees to expect along the way.
When it comes to mortgage applications, every lender is going to have their own set of procedures and fees. However, there are many (unfortunately) fees which all lenders are likely to share. Keeping with the adage that "forewarned is forearmed, Riva Title Company have the following post to offer.
Application Fee
Let's start with the first fee that you're going to see: the application fee. Many borrowers are turned off by this fee simply because they believe it has no real representation. However, the truth is very different. When a lender is establishing your account or your application, there are various security and insurance checks which need to be completed. This due diligence isn't free, unfortunately. And given your position, the lender isn't likely to absorb the costs themselves. Thus, leaving you with an application fee.Origination Fee (Commission)
If a fee is ever listed as a percentage amount, then there is a fair chance that it's for commission. In the case of an origination fee, it's the commission that you will pay your mortgage broker for handling your paperwork and various other services they provide along the way, as they liaise between yourselves and the actual lender. It can be tempting to skip this step altogether and save your money on the fee. However, brokers have a lot of experience in the process and a lot of knowledge which can actually work for you in securing a loan with better terms or a better interest rate.Inspection/Appraisal Fee
This is actually a fee which can provide benefit to yourself in the way of peace of mind. Just as you will want to make sure that your home is worth the price you are paying for it, so too will your lender. After all, if you default on your repayments and your house is foreclosed, a lender needs to feel secure that they can recover any monies owed. This fee will cover the cost of an inspection of the property and an appraisal/report submitted. While the lender or broker will likely have their preference as to what service you use, more often than not, you will be able to choose who performs this obligation. When assessing your property, the inspector will take into consideration the age of the property, its condition, expected lifespan, along with the current and projected market conditions for the area. One of the most important fees which you will pay along your journey to homeownership is for title insurance in Coral Gables. A reputable provider or title insurance in Coral Gables such as Riva Title Company can not only identify any potential title issues before you sign but also protect you in the event that an undiscovered issue arises. Speak with them today by calling 786-787-7888 to learn more.Early Repayment Fee
Every person or couple who go into a mortgage do so with the dream that they will make additional payments in an effort to own their home faster. Whether it's the money they save each month or yearly bonuses which they pretend they never receive and put straight on the mortgage. However, this isn't always as beneficial as you might think. When the contract for your mortgage is drawn up, it's done so with the expectation that the lender will receive a calculated amount of interest, during the term of your repayments. Each repayment that you make lowers the effective interest that you pay. Essentially, each time that you make an early/additional payment, your lender loses money. As you can imagine, lender's aren't too crash hot about this idea. Hence the early repayment fee. It will vary from lender to lender, with some lenders even willing to waive the fee in lieu of other conditions. If you have a favorable credit score and history, this could be a point which you use to negotiate your contract.Title Insurance in Coral Gables
When it comes to peace of mind, it’s hard to look past title insurance in Coral Gables. Title insurance in Coral Gables provides homeowners with security that, should the ownership of their home’s title be challenged, they will be financially protected. Speak with Riva Title Company today at 786-787-7888 to learn more about how title insurance in Coral Gables can protect your investment. Available only prior to settlement, be sure that you speak with a professional before you sign any of your paperwork and take possession of the property.
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