Settlement costs

There are so many different charges involved in buying a home, it is important to know what to expect at the settlement. Network Funding, LP is required to give you a "Estimate of Costs" of your settlement costs within three business days of your loan application. Once you get it, review the charges below to avoid any surprises when you sit down to close on your loan.

Fact:  

Depending on the loan size , all Mortgages have closing costs typically range from 2 to 3%* of the loan size. 

Some lender say they will not charge you as much but the interest rate that your charge you will be much higher.

Fact:

Attorneys / Title Companies do not work for free.

I know it"s hard to believe but they do charge for their services. Not only to prepare the loan documents for closings but also to go to the Court house and check your title on your home,record your new mortgage and send checks out to the parties that are owed money. This is considered third party fees. Network Funding has no control over the amount the Attorney or closing agent charges. Before closing we will email you a HUD with the exact costs. You can choose an  Real Estate attorney of your choice to close your loan just let us know.  

There are three basic categories of settlement costs:

• Fees to get a mortgage. This includes lender fees and discount points, as well as a host of other charges involved in obtaining and processing your loan. Points are an upfront charge expressed as a percent of the loan amount (e.g., 1 point is 1 percent of the loan) to lower your interest rate and monthly payment.

Specific lender fees can include:

• Loan Discount fee  This is a charge for lowering your interest rate to the rate offered to you .
• Title Insurance– Title insurance is protection against loss arising from problems connected to the title to your property. Before you purchased your home, it may have gone through several ownership changes, and the land on which it stands went through many more. There may be a weak link at any point in that chain that could emerge to cause trouble. For example, someone along the way may have forged a signature in transferring title. Or there may be unpaid real estate taxes or other liens. Title insurance covers the insured party for any claims and legal fees that arise out of such problems.
• Appraisal Fee  Network Funding, LP will need an opinion from an independent appraiser of the market value of the home you wish to purchase.
• Mortgage Insurance – A lender may require this type of insurance for buyers who make a down payment of less than 20 percent of the value of the house or refinancing over 80% LTV . The policy covers the lender's risk in the event the buyer fails to make the loan payments. Premiums are typically paid annually from an escrow or reserve account, or in a lump sum at closing. FHA loans have an upfront MIP ( 1.75%) and a Month Fee ( unless a 15 year term Loan. Conventional financing requires over 80% LTV - Mortgage insurance - VA Loans varies on UFMIP
• Homeowner's Insurance – Insurance that protects property against loss caused by fire, some natural causes, vandalism, etc., depending on the terms of the policy. Also includes coverage such as personal liability and theft away from home. Your lender will expect you to have a policy in effect by closing and escrow 2 months in advance 
• Owners Title Insurance: Recomended when buying a home , Click here to get an online estimate.(use the Enhanced costs)

• Fees to establish and transfer ownership of the property. Your lending institution is not likely to give you a loan on a house unless you can prove that the seller owns the property you want to buy. This is where title search and title insurance fees come into play. A title agent will verify that the seller is, indeed, the owner of the property and issue a title insurance policy to guard the lender against any errors that could have occurred in the searching process. The cost of the policy is usually based on the loan amount. There may also be attorney, escrow, courier fees and other charges involved in the settlement process.
•   Fees to state and local governments. These fees include transfer, recordation and property taxes collected by local and state governments. Your taxes based on the assessed value of the home, which you pay for community services such as schools, public works, and other costs of local government. Taxes can often be paid as a part of your monthly mortgage payment.  

* If the loan is for a purchase and or a loan size under $125K - that percentage may vary. If you are buying a home, we recommend depending on the loan amount, for the sellers to pay over 3% of costs.