The specific amount of your closing costs will vary. Appraisal fees, title charges, and closing fees all vary from state to state, and may be based on the home’s value or loan amount. To assist you in evaluating the fees associated with a home loan, we’ve grouped them into two categories:

Third-Party Fees

• Appraisal fee
• Credit report fee
• Settlement / closing fee
• Survey fee
• Tax service fee
• Title insurance fee
• Flood certification fee
• Courier / mailing fees
• State / County local taxes
• County Recording fees

We collect any third-party fees from the borrower, and pass them on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees.

Typically, you’ll see some minor variances in third-party fees from lender to lender, since a lender may have negotiated a special charge from a provider they use often or choose a provider that offers nationwide coverage at a flat rate. You may also see that some lenders absorb minor third party fees such as the flood certification fee, the tax service fee, or courier/mailing fees.

Lender Fees

• Origination fee/Points
• Document preparation fees
• Loan processing fees

Fees such as discount points, document preparation fees, and loan processing fees are retained by the lender and are used to provide you with the lowest rates possible. This is the category of fees that you should compare very closely from lender to lender before making a decision.

Required Advances

You may be asked to prepay some items at closing that will actually be due in the future. These fees are sometimes referred to as prepaid items.

One of the most common required advances is called “per diem interest” or “interest due at closing.” All of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you’ll pay interest, from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we’ll collect interest from June 15 through June 30 at closing. This also means that you won’t make your first mortgage payment until August 1. This type of charge should not vary from lender to lender, and does not need to be considered when comparing lenders. All lenders will charge you interest beginning on the day the loan funds are disbursed. It is simply a matter of when it will be collected.

If an escrow or impound account will be established, you will make an initial deposit into the escrow account at closing so that sufficient funds are available to pay the bills when they become due.

If your loan requires mortgage insurance, up to two months of the mortgage insurance will be collected at closing. Whether or not you must purchase mortgage insurance depends on the size of the down payment you make.

If your loan is a purchase, you’ll also need to pay for your first year’s homeowner’s insurance premium prior to closing. We consider this to be a required advance.

Stanford FCU’s fees are typically much lower than those charged by banks and other lenders because we are not-for-profit and owned by our members.

Check our rates, apply online or contact one of our Mortgage Consultants to get started with your Stanford FCU loan today!