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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.
Here is a break down of the more common third party fees:
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Credit Report Fee: |
Costs to obtain borrower's credit history. |
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Appraisal Fee: |
Fee for a professional appraiser to estimate the value of the property being purchased. |
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Escrow/Closing/Attorney: |
This fee will cover the closing cost of escrow. In some states this is performed
by an attorney and in other states an escrow company. |
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Title Insurance: |
The premium paid for title insurance assures the title on your new home will be
free and clear of any claims or liens that would affect your ability to resell the
property later on. |
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Title Search: |
This preliminary report documents the title history on your home. |
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Recording Fees/Transfer Tax: |
This is the cost for with the recording documents associated with selling your home
and transferring ownership of the property into your name. |
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City/County/State Tax: |
In some states you will pay a tax related to the transfer of real property. Fees
vary by state. |
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Inspection Fees: |
Inspection on the property are usually paid by the buyer. These can include inspections
for property, pests, and various other inspections, depending on the state and region. |
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