Closing Cost

When a loan is applied there are various cost invloved to process the loan. I is called the closing cost. Closing cost for a mortgage will vary depending on the lender and the state. It can be somewhere around 3% to 5% of the loan amount. This cost goes to the lender, government or the services companies. It is important to verify the closing cost first with the lender. It can so happen that the interest rate is low but inturn the closing cost is high.

Following are the various cost which could incur.

Lender Fees

• Origination
• Appraisal
• Credit report
• Inspection
• Underwriting
• Document preparation
• Tax service
• Mortgage insurance

Title charges

• Attorney's fees
• Title Insurance
• Transfer tax
• Recording tax

Other charges

• Property survey
• Termite inspection