Mortgage Settlement
Miscellaneous Closing Costs and Fees


Depending upon the location and type of property, and the extra services you or your lender request, you may also have to pay some of the following miscellaneous closing costs:

Assumption Fee: If you are assuming (or taking over) an existing mortgage, the lender may charge a fee. Estimated cost: Depends on the lender, but will range from several hundred dollars to 1% of the amount of the loan you are assuming.

Expenses Prorated Between the Seller and the Buyer: In your purchase contract, you may agree to split some costs with the seller. In addition to prorated property taxes, some of these expenses may involve large amounts. For example, annual condominium fees, homeowners' association fees, water bills, and other lump-sum service charges may be split between you and the seller to cover your respective periods of ownership for the calendar year or tax period.

Inspections: As a buyer, if you make your purchase offer contingent on the results of a home inspection -- such as testing for structural damage, water quality, and radon gas emissions -- you will have to pay for these inspections.

Escrow Account Funds: In the purchase contract, you can request that the seller set up an escrow account to cover any costs for repairs, radon mitigation, house painting, or other items. For example, if you have not had a chance to test all the appliances (for instance, if you buy in the summer, you may not test the furnace), you may request an escrow account to cover repairs if they are needed in the future. The seller may agree to split the costs with you, in which case you would need these funds at settlement.

Fees Paid to Find a Lender: As a buyer, you may work with a mortgage broker or other third party to find a mortgage loan. For example, you may want to work with a broker to find a loan with nonstandard terms or conditions. Brokers arrange transactions rather than lending money directly; in other words, they find a lender for you. Brokers will generally contact several lenders regarding your application, but they are not obligated to find the best deal for you unless they have contracted with you to act as your agent. Estimated cost: Depends on agreement with the broker; can range from no fee to a percentage of the loan amount.

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