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Loan Costs
| Closing Costs |
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There are certain costs associated with buying your new home. These costs are related
to obtaining the loan, buying the property and transferring title. There may be
additional costs associated with your home purchase depending on the specific terms
of your contract. Your real estate agent can help you in your negotiations with
the seller over various costs. Three percent of the sales price is a good estimate
of what most people pay in closing costs.
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| Break Down of Closing Costs |
Some of the costs of closing the escrow on your new property may be ones
you are unfamiliar with. For example, Origination Fees, Discount Points, and Processing
Fees might all sound foreign to you. TLC Lending wants to ensure that you are educated
and informed about the entire home buying process. Below we have explained a few
of the more common cost terms for your convenience.
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Loan Origination Fees: This is the administrative fee involved in acquiring your
loan. Generally this fee will be based on a percentage of the loan.
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Points: Also known as "Loan Discount Points." At the close of escrow, the lender
is paid a percentage, based on the interest rate of the loan. Each point is represents
one percent of the sales price.
- Processing Fees: These are fees directly related to loan
qualification and evaluation. Some examples include the fee for application, loan
processing, and risk evaluation.
There are more than just the loan fees you will want to consider. Within three days
of your loan applications, TLC Lending will send you a good faith
estimate that will show you all of fees you should anticipate. A Good Faith estimate
as the name implies, is only an estimate. There may be more or less costs involved
by the time your loan is closed.
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| Third Party Fees |
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Third Party Fees are simply fees that your lender collects but does not keep. For
example, the credit report fee covers the cost of obtaining your credit report,
a necessary step to determine your ability to borrow money to purchase your home.
Learn more.
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| Taxes, Insurance, Interest |
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Taxes, Insurance, and interest are also costs associated with selling your home.
These fees may be prorated, meaning they are spread out over a certain time period,
depending on when your escrow closes.
Learn more.
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