TeachMeFinance.com - explain settlement costs
Transaction, settlement, or
closing costs -- may include application fees; title examination, abstract of title,
title insurance, and property survey fees; fees for preparing deeds, mortgages, and
settlement documents; attorneys fees; recording fees; and notary, appraisal, and
credit report fees. Under the Real Estate Settlement Procedures Act, the borrower receives
a good faith estimate of closing costs at the time of application or within three days of
application. The good faith estimate lists each expected cost either as an amount or a
settlement costs -- money paid by borrowers and/or sellers to effect the closing of a mortgage loan. This normally includes an origination fee, discount points, title insurance premium, survey costs, attorney's fees, and prepaid items such as insurance and tax payments to the escrow account.
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