Utah
Mortgages
Utah Mortgages: Fees To Consider
Over the next few months you’ll find there’s
a lot more involved in buying a house than picking out the paint!
There are cost you couldn’t have thought of, such as:
Down Payment
Most lenders require at least 10% of the purchase price, though
new programs are available for 3%-5% down. 100% financing can be
found, but you credit must be excellent and PMI insurance will be
required.
Loan Origination Fee
A lender's fee for establishing a new loan. Government regulations
allow only 1% origination fee on FHA or VA loans. Conventional loan
fees can vary from -1 to 3+ points, plus other costs. A point is
1% of the loan.
Appraisal Fee
Fee paid to obtain an estimate of market value upon which the lender
will base the loan amount. The cost is about $300-$500. Non-refundable.
Credit Report
An evaluation of the buyer's credit habits made by a credit bureau
for the lender.
The cost is $50-$60. Non-refundable.
Tax Service Fee
A charge of approximately $75 is made by a tax service company to
verify to the lender that the taxes have actually been paid when
due or are due to be paid by borrower or mortgage company if impounding.
Assumption Fee
Fee of approximately $250 up to 1% of the loan balance is charged
by the existing lender for the privilege of assuming the existing
loan.
Pest Inspection Fee
Fees of $75 - $175 is charged by termite companies for inspecting
property for damage done by wood destroying organisms and dry rot.
It is customary for the seller to pay for Section 1 and the buyer
for Section 2 work.
Other Inspection Fees
Other inspections the buyer may choose to have done are: property
inspections that usually cover foundation, electrical, plumbing
and overall construction at a cost of $300-$400. Roof inspections
cost $75-$125. Geological reports cover subject's site in relation
to fault and slide zones, costing about $100.Septic $200-$400. Radon
$50-$100. Asbestos $75-$125.
Alta Title Insurance
This is an extended policy with more specific coverage
than the CLTA standard policy.
It covers unrecorded liens, is based on loan amount only and is
required by almost all lenders. The cost is obtained from a rate
chart and is based on the loan amount.
City Transfer Tax
A municipal tax imposed within the corporate limits of some cities.
The cost is $3.30 per $1,000 of selling price, usually negotiable
between buyer and seller, but custom varies between countries.
The VA does not allow the veteran buyer to pay any portion of this
cost.
Miscellaneous Costs & Fees
An estimate of $150 should be adequate to cover minor items as notary,
recording documents, endorsements, etc. as well as allowing for
variations from these other estimates.
Hazard Insurance Reserve
Two month's premium is collected for the impound account if required.
The buyer will need to either provide or pay for coverage for the
1st year.
Prepaid Interest
Interest must be paid from COE (close of escrow) to 30 days prior
to the first regular mortgage payment. An estimate of one months
interest should suffice.
Mortgage Insurance
Mortgage Insurance is required on all conventional loans greater
than 80%.
The cost may range from 1/2% to 1% per year and 14 months premium
is
collected in advance. This is coverage for the lender in case of
default.
Tax Impounds
If the new loan is going to have an impound account, the lender
will require from 2-10 months taxes to be deposited, depending on
the time of year. Note: if taxes are prorated, buyer's total charge
for taxes should equal about six month's taxes.
Escrow Fee
These fees range from $750-$2500, depending on the sales price.
In some counties its customarily paid by the seller, in other counties
the buyer pays, while in others it may be customarily split. Remember
though, everything is negotiable.
Negotiating Fees
The above fees are typical costs when buying real estate in California
counties.
Most of the fees are considered buyer's non-recurring closing costs.
Some of the fees are fixed while others are negotiable.
Your real estate agent can negotiate with the sellers to pay some
or most of these costs, saving you thousands of dollars in closing
costs.
Ask your real estate agent and loan agent to provide estimated closing
costs of buying a home before looking at homes.
Everything you want to know about Utah mortgages is right here
and we’ve compiled it onto one easy to use sight!
Good luck in your Utah mortgage search!
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