Closing Costs If you have never been to a closing, it's hard to imagine how funds are dispersed. There are expenses for the title company, the recorders office, listing and selling agents to name just a few. Closing costs will vary depending upon the loan product you choose. The HUD-1 Settlement Statement is a standard form used to document the expenses of the transaction. Both the borrower and seller are represented on the same form. Below is a brief description of each section of the Settlement Charges on the HUD-1. A partial list of the more common line items have been listed.
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| 700. TOTAL COMMISSION - This section is where the commission paid to the listing and selling (buyer) agent is disclosed. Typically this is a percentage of the purchase price paid by the seller. |
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| 800. ITEMS PAYABLE IN CONNECTION WITH LOAN - This section cover the lender fees for the buyer. |
| 801 Loan Origination Fee |
| 802 Loan Discount |
| 803 Appraisal Fee |
| 804 Credit Report |
| 805 Lender's Inspection Fee |
| 806 Tax Service Fee |
| 807 Underwriting Fee |
| 808 Processing Fee |
| 809 Wire Transfer Fee |
| FLOOD LIFE OF LOAN CERTIFICATE |
| COURIER FEE |
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| 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE - Items in section 900 are required to be set aside for the prepaid expenses. At closing, you will also be asked to impound enough of each to make certain that money is available to pay them as taxes and insurance come due. |
| 901 Interest |
| 902 Mortgage Insurance Premium |
| 903 Hazard Insurance Premium |
| VA Funding Fee |
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| 1000. RESERVES DEPOSITED WITH LENDER - Items in section 1000 are for the escrow account. These funds are held by the lender in non-interest bearing trust accounts on behalf of the borrower. |
| 1001 Hazard Insurance Premium |
| 1003 Taxes and Assessment Reserves |
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| 1100. TITLE CHARGES - Items in section 1100 are the fees related to title and are usually split between the buyer and seller. |
| 1101 Closing or Escrow Fee |
| 1102 Document Preparation Fee |
| 1103 Notary Fees |
| 1104 Attorney Fees |
| 1105 Title Insurance |
| TITLE ENDORSEMENTS |
| TITLE BINDER |
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| 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES - Items in section 1200 are where the recording fees for the Statutory warranty Deed, Deed of Trust and all Recorded documents go. |
| 1201 Recording Fees |
| 1202 City/County Tax/Stamps |
| ASSIGNMENT |
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| 1300. ADDITIONAL SETTLEMENT CHARGES - Items in section 1300 are for any additional settlement charges like utilities, pest bill, septic pump, taxes to be paid, Reconveyance Fees and any other items to be paid through Escrow. |
| 1301 Pest Inspection |
| Survey |
