| 800 |
Items Payable in Connection with Loan:
These are the fees that lenders charge to process, approve and make the mortgage
loan. |
| 801 |
Loan Origination: This fee is usually
known as a loan origination fee but sometimes is called a "point" or
"points." It covers the lender's administrative costs in processing the loan.
Often expressed as a percentage of the loan, the fee will vary among lenders.
Generally, the buyer pays the fee, unless otherwise
negotiated. |
| 802 |
Loan Discount: Also often called
"points" or "discount points," a loan
discount is a one-time charge imposed by the lender or broker to
lower the rate at which the lender or broker would otherwise offer the loan to
you. Each "point" is equal to one percent of the mortgage amount. For example,
if a lender charges two points on a $80,000 loan this amounts to a charge of
$1,600. |
| 803 |
Appraisal Fee: This charge pays for an
appraisal report made by an appraiser. The
final cost is affected by the type of property, location, and forms required by
your loan approval. |
| 804 |
Credit
Report Fee: This fee covers the cost of a
credit report, which shows your credit history. The lender uses the information
in a credit report to help decide whether or not to approve your loan and how
much money to lend you.
|
| 805 |
Lender's Inspection Fee: This charge
covers inspections, often of newly constructed housing, made by employees of
your lender or by an outside inspector. (Pest or other inspections made by
companies other than the lender are discussed in line
1302.) |
| 806 |
Mortgage Insurance Application Fee: This fee covers the processing of an application for
mortgage insurance. |
| 807 |
Assumption Fee: This is a fee which is charged
when a buyer "assumes" or takes over the duty to pay the seller's existing
mortgage loan. |
| 808 |
Loan Processing Fee: This is the
transaction fee charged by the lender to cover the administrative labor
costs. |
| 809 |
Underwriting
Fee: This is the transaction fee charged by the lender to cover loan
approval costs. |
| 810 |
Document Preparation: This is the fee
charged by the lender to prepare closing
documents. |
| 812 |
Tax Service Fee: This charge pays for
future reporting of property taxes to your loan
servicer. |
| 814 |
Flood Verification Fee: This charge
pays for research to check if the subject property is located in a Flood Zone as
determined by Federal Emergency Management Agency
(FEMA). |
| 815 |
Courier Fee: This charge pays for and
overnight or express delivery charges. |
| 900 |
Items Required by Lender to Be Paid in
Advance: You may be required to prepay certain items at the time of
settlement, such as accrued interest, mortgage insurance premiums and
hazard insurance premiums. |
| 901 |
Interest: Lenders usually require
borrowers to pay the interest that accrues from the date of settlement to the
first monthly payment. |
| 902 |
Mortgage Insurance Premium: The lender
may require you to pay your first year's mortgage insurance premium or a lump
sum premium that covers the life of the loan, in advance, at the
settlement. |
| 903 |
Hazard
Insurance Premium: Hazard insurance protects you
and the lender against loss due to fire, windstorm, and natural hazards. Lenders
often require the borrower to bring to the settlement a paid-up first year's
policy or to pay for the first year's premium at
settlement. |
| 904 |
Flood Insurance: If the lender requires
flood insurance, it is usually listed here. |
1000-
1008 |
Escrow
Account Deposits: These lines identify the
payment of taxes and/or insurance and other items that must be made at
settlement to set up an escrow account. The lender is not allowed to collect
more than a certain amount. The individual item deposits may overstate the
amount that can be collected. The aggregate adjustment makes the correction in
the amount on line 1008. It will be zero or a negative amount.
|
| 1100 |
Title Charges: Title charges may cover
a variety of services performed by title companies and others. Your particular
settlement may not include all of the items below or may include others not
listed. |
| 1101 |
Settlement or Closing Fee: This fee is
paid to the settlement agent or escrow
holder. Responsibility for payment of this fee should be negotiated between the
seller and the buyer. |
1102-
1104 |
Abstract of Title Search, Title
Examination, Title Insurance Binder: The charges on these lines cover the costs of
the title search and examination. |
| 1105 |
Document Preparation: This is a
separate fee that some lenders or title companies charge to cover their costs of
preparation of final legal papers, such as a mortgage, deed of trust, note or
deed. |
| 1106 |
Notary Fee: This fee is charged for the
cost of having a person who is licensed as a notary public swear to the fact
that the persons named in the documents did, in fact, sign
them. |
| 1107 |
Attorney's Fees: You may be required to
pay for legal services provided to the lender, such as an examination of the
title binder. Occasionally, the seller will agree in the agreement of sale to
pay part of this fee. The cost of your attorney and/or the seller's attorney may
also appear here. If an attorney's involvement is required by the lender, the
fee will appear on this part of the form, or on lines 1111, 1112 or
1113. |
| 1108 |
Title
Insurance: The total cost of owner's and
lender's title insurance is shown here. |
| 1109 |
Lender's Title Insurance: The cost of
the lender's policy is shown here. |
| 1110 |
Owner's (Buyer's) Title Insurance: The
cost of the owner's policy is shown here. |
| 1200 |
Government Recording and Transfer
Charges: These fees may be paid by you or by the seller, depending
upon your agreement of sale with the seller. The buyer usually pays the fees for
legally recording the new deed and mortgage (line 1201). Transfer
taxes, which in some localities are collected whenever property changes hands or
a mortgage loan is made, can be quite large and are set by state and/or local
governments. City, county and/or state tax stamps may have to be purchased as
well (lines 1202 and 1203). |
| 1300 |
Additional Settlement Charges: |
| 1301 |
Survey: The lender may require that a
surveyor conduct a property survey. This is a protection to the buyer as well.
Usually the buyer pays the surveyor's fee, but sometimes this may be paid by the
seller. |
| 1302 |
Pest and Other Inspections: This fee is
to cover inspections for termites or other pest infestation of your
home. |
1303-
1305 |
Lead-Based Paint Inspections: This fee
is to cover inspections or evaluations for lead-based paint hazard risk
assessments and may be on any blank line in the 1300
series. |
| 1400 |
Total Settlement Charges: The sum of
all fees in the borrower's column entitled "Paid from Borrower's Funds at
Settlement" is placed here. This figure is then transferred to line 103 of
Section J, "Settlement charges to borrower" in the Summary of Borrower's
Transaction on page 1 of the HUD-1 Settlement Statement and added to the
purchase price. The sum of all of the settlement fees paid by the seller are
transferred to line 502 of Section K, Summary of Seller's Transaction on page 1
of the HUD-1 Settlement Statement. |
Paid Outside Of Closing ("POC"): Some
fees may be listed on the HUD-1 to the left of the borrower's column and marked
"P.O.C." Fees such as those for credit reports and appraisals are usually paid by the borrower
before closing/settlement. They are additional costs to you. Other fees such as
those paid by the lender to a mortgage broker or other settlement service
providers may be paid after closing/settlement. These fees are usually included
in the interest rate or other settlement charge. They are not an additional cost
to you. These types of fees will not be added into the total on Line
1400. |