Closing Costs

Closing Costs are Somewhat Higher for Construction Loans and Can Vary from Lender to Lender.

BBecause of the variety of the construction loan programs we offer, our rate sheets are a little too complex to be reproduced in a sensible manner on the web. Adjustable rates are as Low Prime Minus One. A variety of 30 year programs are offered with 5, 7, 10, or 30 year Fixed Rate periods, at surprisingly low rates.

We will of course be glad to quote you a rate as soon as you give us some information as to what your needs are.

The following is a list of typical fees charged. When you apply for a loan we will mail you a Good Faith Estimate of closing costs. This document will more accurately list and estimate the cost of your loan.

Lender Related Fees
These are fees directly associated with the loan origination.
Loan Origination	This fee varies, depending on such factors as, Amortization period, Construction period, the size of the loan and documentation requirements. Starting at 1% it rarely exceeds 3%
Processing/Underwriting	These fees are charged to the seller in Rehabilitation loan cases. In a construction loan case, depending on the loan type they rage between $595 and $995.
Document Preparation Fee	Also charged to seller in a rehabilitation loan. It ranges between $200 to $300 for construction loans.

Third Party Fees
These are fees charged at close of escrow, which are paid for services provided by outside parties. Some of these fees are regulated by government agencies.
Appraisal Fee	In the case of a construction or rehabilitation loan, the appraisal report is somewhat more involved, as the appraiser has to determine the value of something that is not actually there. Typical fees range between $400 to $800.
Credit Report Fee	Full residential credit report, at $60.
Tax Service	Typically runs at $76
Flood Check Fee	Typically runs at $30.
Escrow Fee	Is a factor of the transaction amount, and is typically split between buyer and seller.
Title Insurance	Is a factor of the transaction amount, and is typically split between buyer and seller.
Recording Fee	At about $50.
Notary Fee	At about $25.

Pre-Paid Costs
At close of escrow, there will typically be some charges to cover items such as pro-rated taxes, insurance and pro rated interest.
Pre-paid Interest	Interest on the loan until first payment is due. depends on loan amount and closing date.
Property Taxes	Are pro rated.
Hazard Insurance	First year is typically payable in advance.