Closing Costs Definitions 

Purchase Price: The price that has been agreed upon by owner and buyer for the transferring of a property.

Loan Amount: The dollar amount borrowed by buyers to raise funds to buy real estate while putting a lien on the property being purchased or refinanced.

Settlement Fee: Paid to the title company or attorney for conducting the closing.

Title Search: Paid to the title company for doing a detailed search of the property records for your home. The title company will look at prior deeds, property and name indexes, and many other documents to ensure that there are no liens or problems associated with your ownership of the property.

Closing Protection Letter: Fee charged by a Title Insurance Company to agree to indemnify the lender for actual losses caused by certain kinds of misconduct by the closing agent.

Obtain MLC: Municipal Lien Certificates show the current year's taxes, the last year the taxes were paid, and any delinquencies to be collected at closing. This is the cost of ordering one from the varies towns / cities.

Survey Deletion Affidavit: Fee charged by a Title Insurance Company to prepare a document for the seller to confirm that they are unaware of unpaid debts, encroachments, or property line disputes.

Courier Fee: This fee covers the cost of transporting documents to complete the loan transaction as quickly as possible to avoid paying additional interest on your mortgage loan.

Trust Review/Memo/Opinion: Legal fees associated with determining the legality of holding a property in a trust and the preparation of a Memorandum of Trust, which confirms the trustees ability to finance or sell a property.

Subordination Preparation: This fee is associated with the preparation of a document that describes the priority of a mortgage. Normally the priority has to do with the date is was recorded but with this document you can override that fact. For example, if you have a first and second mortgage on your home and you want to refinance your original mortgage but not the second, the lender of the second will have to sign a document that states they agree to keep their mortgage in second.

Construction Rundowns: This fee is charged if utilizing a construction loan. The lender will have the title company update the title to make sure no liens have been put on the property since the closing. If there are no liens since the closing, the lender will make construction disbursements. 

Wire/Disbursement Fee: A fee charged by the title company to cover the bank fees associated with disbursing funds electronically.

Adjustable Rate Rider: Fee charged by a Title Insurance Company to prepare a document that attaches to the title policy protecting the lender's enforceability of the adjustable rate mortgage.

Recording Fees: Charged by the County Clerk to record documents in the public records.

Lender's Policy: The cost of the lender’s title insurance policy, which insures the lender's lien; does not protect the buyer. This covers the costs of assuring the lender that you own the home and the lender’s mortgage is a valid lien.

Owner’s Policy: The cost of the owner’s title insurance policy, which protects the homeowner’s investment in the event someone challenges your ownership of the home. This is a one-time charge and the policy lasts for as long as they, or their heirs, own the property.

*Note: Often times we can find a start and get a Re-issue rate of $1.50 per thousand. This discount will automatically be applied when applicable and is not reflected in this Estimate.