Closing cost estimation is simple if you can understand the various fee that feature while computing mortgage loan closing costs. Application fee, appraisal fee, survey fee, discount and origination fee, flood certification fee, credit report fee, recording and transfer charge, title search and title insurance etc. are part of the home mortgage closing cost estimation. Some of them are discussed here:
Application fee: Covers the lender's cost to process the information on your loan. This can be paid at the time of filling the application. Generally this amount will not be refunded in case your loan is not sanctioned or you decide not to take it.
Appraisal fee: This fee pays for an independent appraisal of the home you want to purchase.
Discount point: Discount point is the additional money you pay the lender at the time of closing. Interest rate will be lowered if you pay more points. If you plan to live in the same house for many years, paying points is a good option.
Origination fees: Lenders charge this amount for evaluating, preparing and submitting a proposed mortgage loan. Origination fees is usually expressed as a percentage.
Survey fee: This fee is paid towards conducting the survey of your property. The amount depends on the size of your property as well as the state you live in.
Flood certification fee: This fee is paid in order to check whether the property is with in the flood zone or not.
