Here is a closing glossary you may want to know if purchasing a home:

Appraisal Fees: Fee set by the appraiser to provide a written estimate or opinion of a property’s value based on comparable sales, improvements on the property and location

Lender’s Title Insurance: Fee paid to the title company for insurance of lender’s title insurance policy that protects the lender in the event that clear ownership of property is challenged by the discovery of faults in the title

Loan Discount Points: A form of pre-paid interest equaling a percentage of the loan amount, paid to reduce the interest rate on a mortgage for the life of the loan. One “point” is usually 1% of the loan amount

Origination Fees: Fee charged by the lender or broker as compensation for providing origination services associated with the loan
Owner’s Title Premium: Fee paid to title company for protection of owner’s title insurance policy in the event that ownership property is challenged by the discovery of faults in the title

PMI/MIP: (Private Mortgage Insurance/Mortgage Insurance Protection). Insures the lender against loss in the event of defaults by borrower. Often required by lender if borrower puts less than 20% down

Pro-Rated Taxes: An amount paid to the brokerage firm representing the buyer or seller for real estate services agreed upon in the property listing agreement, buyer representation agreement, or by contract

Settlement Fee/Escrow Fee: Fee paid for settlement service provider to conduct the loan settlement and/or real estate closing transaction. Services may include carrying out contact instructions, obtaining execution, disbursing sales proceeds, etc.

Tax Search Certification: Certificate obtained to determine any unpaid property taxes or assessments that may constitute liens against property

If you have any questions, we are here to help!