At Shoreline Mortgage, we fully disclose all closing costs and prepaids.
Closing Costs are “one time costs to obtain a mortgage, paid at closing” and include the following:
Guaranteed Lender Fee: We charge one all-inclusive Guaranteed Lender Fee also known as “Origination Charge” , which includes processing, underwriting, doc prep, funding and wire transfer fee. This is guaranteed at time of your loan application.
Guaranteed Discount Points OR Guaranteed Rebate: You may elect to pay discount points to buy down your interest rate. Or you may choose a slightly higher rate and obtain a rebate to offset some or all of your closing costs. This is guaranteed at time of your rate lock and depends on your choice of interest rate.
Guaranteed Appraisal Fee: Your appraisal fee is collected in advance on a credit card. The funds are used to pay for your appraisal, a service performed by an independent third party. Appraisal fees are guaranteed on both purchase and refinance transactions.
Guaranteed Government Recording Charges: The county recorder’s office will charge a recording fee to record your new mortgage or deed of trust.Guaranteed Government Transfer Taxes: Some states, counties and cities charge a transfer tax (also known as a Mortgage Tax or Tax Stamps) when you purchase a property or refinance a mortgage. Government transfer taxes are guaranteed and per government requirements are based on loan amount. That said, they will only change if the loan amount changes.
Closing Agent and Title Insurance: Closing agent (or attorney) and title insurance fees are guaranteed if you use the national service provider we contract with to provide these services in your state. You will notice that these fees are extremely competitive due to the high volume of business that we provide to these service providers.
Prepaids are “recurring costs of homeownership, partially prepaid at closing” and include the following:
Initial Escrow/Impound Account Deposit: If an escrow/impound account is to be established for the ongoing payment of your property taxes and homeowner’s insurance, funds will be collected at close to make an initial deposit into the account so that sufficient funds will be available to pay these recurring expenses as they become due.
Prepaid Interest: Your mortgage payment due date will be the first of each month. If your loan is closed on any day other than the first of the month, prepaid interest will be collected at closing, calculated from the date of closing through the end of the month.
First Year Homeowner’s Insurance Premium:
If your loan is a purchase transaction, your first year’s homeowner’s insurance premium will be collected at closing and paid to your insurance company.