Closing Costs and Fees | Maine Home Connection
Maine Home Connection
Home Home About Us About Us Contact Us Contact Us
MHC MHC MHC MHC MHC MHC
Buyers Sellers Stats Maine Blog Home Valuation Properties
Explore Communities
Search All Properties
Weekly Open House
Local Lifestyle Videos
Your Home's Value
Waterfront Real Estate
Moving to Maine?
Featured Listings
Home Finance & Mortgage
Retirement in Maine
Real Estate Investing
Featured Properties
Enter a keyword to search the site

Features & Services
   
Your Home's Value My Home's Value:
Receive a Report of  Your Home's Value 
New Construction Green Homes: 
Guidelines, Builders, Green Homes
Your Homes Value Market Insights:
Current Home Sales Reports & Statistics 
Sold Properties Sold Data:
View All Recent Home Sales History
Left-Marketing Home Marketing:
MHC Imagine More Home Marketing 
   
...Manage Your Account
   
Login Existing Users:
Login with your email address only
Existing Users New Users: 
Simple signup to view   all Maine properties.
Contact Us Contact Us:  
Call or email us with your questions.
   
Newsletter Signup
 

Maine Mortgage Information

Lender Fees & Closing Costs 

All closing costs are spelled out in the lender’s Good Faith Estimate, which is required by Federal law. If you want to make sure you are paying the least amount possible in closing cost fees, it is wise to compare costs from different lenders. The Good Faith Estimate is just that - an estimate. The actual changes may differ. RESPA allows the borrower to request to see the HUD-1 Settlement Statement that shows all actual charges imposed on borrower in connection with the settlement one day before the closing. If you see a charge that doesn’t make sense, or that no other lender has, it’s time to ask questions.

Below is a list of fees you may expect lenders to charge you (although different lenders may use different names):

Lender Fees

In the state of Maine these costs are typically paid by the buyer.

Loan Application Fee - (or Origination Points) is charged by the lender for evaluating, preparing, and submitting a proposed mortgage loan. Origination fees are often expressed as a percentage. A one percent loan origination fee is equal to 1% of the loan amount. Some lenders add origination points into their quoted points while other lenders add an origination point in addition to their quoted points.

Application Fee - covers the lender’s cost to process the information on your loan. Usually, you must pay this charge at the time you file the application. Some lenders may apply the cost of the application fee to certain closing costs. Generally lenders do not refund this application fee if you are not approved for the loan or if you decide not to take it.

Credit Report - Three major national credit bureaus (Equifax, TransUnion and Experian) supply lenders with the information on your credit behavior. Consumers typically pay $45 to $55 for this report. You only pay once, however, usually between $40 and $60.

Processing Fee - here the lender is charging you for the cost of processing the loan. It´s usually between $75 and $125.

Document Preparation Fee - The cost of preparing loan documents for the closing. Between $0-$200. This is a very negotiable item.

Appraisal Fee - This fee ($150 to $400 depending on the price of the home) pays for an independent appraisal of the home you want to purchase. The lender requires this estimate of the market value of the house for the loan. Factors to be considered in determining market value are: present cash value; use; location; replacement value of improvements; condition; income from property; net proceeds if the property is sold, etc. The appraisal is a critical factor in determining how much of a mortgage the bank or mortgage company will approve. After the appraisal is completed, the borrower is normally entitled to a copy of the appraisal from the lender.

Title Search & Insurance - A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title.

A title search can show a number of title defects among these are unpaid taxes, unsatisfied mortgages and judgments against the seller. But there are some hidden defects that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other problems include things like fraud, forgery, defective deeds, mental incompetence, confusion due to similar or identical names, and clerical errors in the records. These defects can arise after you have purchased your home and jeopardize your right to ownership.

Survey Fee - The title insurance company or lender may require a survey of the property. This is to verify official boundaries of the property and that your lot has not been encroached upon by any structures. Depending on the size of the property and what state you live in, this cost ranges from $225 to $350.

Flood Certification - Some homes require flood certification fees, amounting up to $30. It verifies that the property is not in a flood zone. If the property is located within a defined zone the lender will require a flood insurance policy.

Recording and Transfer Charges - A small fee (to $50 to $150) to cover the cost of the paperwork required to record your home purchase.

Documentary Stamp Tax (Transfer Taxes) - Are collected by the state of Maine and are paid equally by the buyer and the seller. The amount is calculated as $2.20 per $1,000 of the sales price.

Interim interest - Accrued interest from closing date until the end of the month.

Pre-paid interest on the loan - The per-day interest charge on the loan from the day of the closing until the last day of the month in which you close. This is paid at closing due to timing and last minute calculations. After that, you skip a month and begin paying a regular monthly balance because the loan is paid in arrears. The cost depends on the size of the loan and the interest rate.

Costs Paid for By Sellers

Real Estate Fees (Commission)
Documentation for Deed
Loan Fees Negotiated per Contract
Accrued Interest to Lender
Home Warranty, per Contract if Negotiated  
Pay-Off of any Outstanding Judgments, Liens, Etc.  
Any Unpaid Homeowner's Dues
 

 
Buying Your Home Heart and Mind Buyer Agency
Exclusive Services Agency Relationships Title Insurance
Home Buying Process Advice and Strategy
Affect of the Economy Determining A Price First Time Buyers Viewing Homes Second Homes Home Search Strategy Waterfront Real Estate
Common Forms
Selling Your Home Your Home's Value Home Marketing
Digital Photography High Definition Video Property Storyboard Virtual Staging Internet Marketing
Pricing Factors Advice and Strategy
Counteroffers Establishing a Price Listing Agreements Feng Shui Principles Considering Repairs Value of Improvement Choosing A Realtor Common Mistakes
Home Selling Process
Stats
Maine Maine History Maine Geography Maine Economy Maine Demographics Maine Education Maine Climate Maine Beaches
Maine Real Estate Blog
Home Valuation
Search for Properties Virtual Home Buying Hyper Local Search
Maine Communities Portland South Portland Scarborough Falmouth Cape Elizabeth Cumberland Yarmouth Old Orchard Beach Freeport Harpswell
Search For Homes Maine Map Search Detailed Property Search Search By Address Search By MLS Number
Open House
Local Lifestyle Videos
Home Valuation
Waterfront Real Estate Coastal Maine
Maine Coastal Properties
Maine Lakes
Maine Lake Properties
Casco Bay Islands Maine Rivers Waterfront - FAQ's
Relocation Services Relocation Package Maine Counties Quality of Life Education and Schools Art and Culture Property Tax Rates Common Relocation FAQs Moving Long Distance
Mortgage Center Calculator Mortgage Types Credit Scoring Fee & Closing Costs Mortgage FAQs
Retirement in Maine Retirement Planning Retirement Communities Changing Demographics
Real Estate Investing Vacation Homes 1031 Tax Exchanges Condos and Townhomes Remodeling: Cost vs Value