When you are buying or selling real estate, you receive a statement of your estimated closing costs (for buyers it’s typically called a Good Faith Estimate and for sellers it’s typically called an Estimate of Net Proceeds). This chart helps break down some of those estimated closing costs, but know that every transaction is different and not all fees apply to every transaction.
| Cost | Charged By | Description |
| LENDER FEES | ||
| Appraisal | Fee Appraiser | Paid to Fee Appraiser for appraisal of property |
| Credit Report | Lender | Paid to Credit Bureau for report containing 3 repositories: TRW, TU, and Equifax |
| Documentation Preparation | Lender | Paid to Lender for preparation of final loan documents |
| Flood Certificate | Lender | Charged for investigation to determine if the subject property is located in a flood hazard zone |
| Insurance Impounds | Lender | 1 year + 2 months Hazard Insurance collected for impound reserve account |
| Origination Fee | Lender | Charged for lending money (a percentage of the loan amount) |
| Processing | Lender | Paid to mortgage broker for processing loan package from application to closing |
| Tax Impounds | Lender | Collected to create an impound reserve account for the lender to pay property taxes |
| Tax Service | Tax Service | Charged to buyer to set up property tax notice to lender |
| Underwriting | Lender | Fee to direct lender for the process of approving |
| Wire | Banking Institute | Charged for the wiring of funds to title for closing |
| PAYOFFS & DISBURSEMENTS | ||
| Fire Insurance | Insurance Agency | 1 year prepaid premium for Homeowners Insurance |
| HOA Dues | HOA Management | Paid through month of closing |
| HOA Transfer Fee | HOA Management | Management to transfer ownership and handle new accounting set-up |
| Notary | Notary | Charged to seller for signing of grant deed or certification of trust Charged to buyer for signing loan documents |
| Recording Fee | Existing Lender | Charged for having reconveyance recorded |
| Statement/Forwarding Fee | Existing Lender | Charged for issuing a payoff statement |
| HOA Dues | Seller to Buyer | Calculated from date of close of escrow through month-end |
| TITLE FEES | ||
| Lender’s Title Policy | Title | Title policy issued to lender to cover the amount of the loan (Based on loan amount unless it is a negative amortization loan) |
| Document Transfer Tax | County | Charged on all properties that transfer title (Based on sales price) |
| Electronic Recording (Shipping & Handling) | County | Charged to file for electronically recording documents |
| Federal Express | Federal Express | Charged to file for delivery of all time sensitive documents/monies |
| Lenders Endorsement | Title | Charged for endorsements required by lender to cover “outside the normal” risk circumstances |
| Messenger | Messenger Service | Charged to file to special messenger documents during the course of escrow (Fee varies with distance) |
| Owners Title Policy | Title | Charged to file to issue a title policy (Based on sales price. May be reduced if home was purchased or refinanced in the last 5 years. Insures that the title if free and clear at the time of transfer) |
| Record Grant Deed | County | Charged to file for recording the Grant Deed |
| Record Release/Reconveyance | County | Charged to file for recording the release/reconveyance |
| Record Trust Deed | County | Charged to file for recording Trust Deed |
| Sub-Escrow Fee | Title (Split between buyer and seller) | Fee to administer the payoff of loans or property taxes of the seller and collection of funds from the new lender |
| Title/Wire Fee | Banking Institution | Charged to file for wiring fund to escrow, seller, lenders, etc |
| ESCROW FEES | ||
| Demand Fee | Escrow to Seller | Charged for requesting a statement and processing involved in getting a payoff figure to escrow on the outstanding amount of the current loan (One demand fee per loan) |
| Document Fee | Escrow | Escrow covers the expenses for drawing legal documents for official records |
| Escrow Fee | Escrow; to Buyer and Seller | Covers liability assumed as well as standard processing costs |
| Process HOA Documents and Transfer Fee | Escrow; to Buyer and Seller | Fee for processing required to assign membership for HOA and copying all governing documents |
*Not all fees apply to every transaction
