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HUD-1
ITEM
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DESCRIPTION
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800 Items Paid in
Connection with Loan
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800-Fees
that the Lender charges to process approve and make the loan.
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801
Lender's Loan Origination Fee
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801-A
fee charged to the borrower by the lender for making a mortgage loan. The
fee is usually computed as a percentage of the loan amount.
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802 Lender's
Loan Discount Fee
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802-A
one-time only fee by the lender or broker to lower the interest rate
normally charged. Each point is equal to 1% of the mortgage amount.
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803
Appraisal Fee
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803-Payment
to an appraiser to research and assess the market value of the property on
which a mortgage is being placed. The appraisal is required in order to
determine the security of the loan and the borrower's Loan- to-Value (LTV)
ratio.
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804
Credit Report
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804-This
fee is charged by a credit service agency to provide the lender with a
report detailing a borrower's credit history. Because the lender requires
an independent credit report, we cannot reuse any prior credit reports you
may have. The credit report is used as an indicator of the borrower's
willingness to repay the debt.
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805
Lender's Inspection Fee
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805-Charged
if a lender has to have someone inspect a property after an appraisal has
been done. This fee is most likely charged if you are buying a new house
and the lender wants to ensure the home is completed.
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808
Mortgage Broker Commission/Fee
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808-This
fee is paid to the mortgage broker. At E-LOAN, our fees are typically less
than half of the fees charged by traditional brokers.
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809
Tax Service Fee
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809-The
lender requires research of the records of the Registry of Deeds for the
county in which the property lies. Each property is reviewed to confirm
that the taxes are paid in full and up to date. Any unpaid property taxes
are a liability to the lender.
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810
Processing Fee
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810-Pays
for all costs associated with the physical processing of your loan (paper,
files, copying, etc.).
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811
Underwriting Fee
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811-The
lender's fee for reviewing your loan application.
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812 Wire
Transfer Fee
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812-When
you purchase the property the lender will wire funds to an account, known
as an escrow account, to cover the loan amount and the closing costs. The
receiving account charges a nominal fee for the wire transfer.
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900
Items Required by Lender to be Paid in Advance
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900-Items
that you may be required to prepay at the time of settlement, such as
accrued interest, mortgage and hazard insurance premiums.
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901
Interest for XX days at $XXXX per day
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901-Prepaid
interest due on the new loan from the date of funding to the end of the
month.
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902
Mortgage Insurance Premium
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902-Private
Mortgage Insurance (PMI) may be required on certain loans. It is paid by
the borrower and insures the lender against certain losses in the event of
a foreclosure.
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903
Hazard Insurance Premiums
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903-The
lender will require you to insure the property you are buying, since the
property is the collateral for the loan. At the time of closing you must
pay the entire first year's premium. If you already have hazard insurance,
contact your insurance company and ask them for a copy of your insurance
policy to show the lender.
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904
County Property Taxes
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904-Each
state differs regarding the taxes that are due and payable up front on a
purchase.
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1000 Reserves
Deposited with Lender
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1000-Reserves
held by the lender in an escrow account to pay for the borrower's future
insurance premiums and taxes.
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1001 Hazard
Insurance: months at $ /mo.
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1001-Impounds
may be required on loans with Loan-to-Value (LTV) ratios over 80%.
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1002
Mortgage Insurance: months at $ /mo.
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1002-Impounds
may be required on loans with Loan-to-Value (LTV) ratios over 80%.
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1004
County Property Taxes: months at $/mo.
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1004-Impounds
may be required on loans with Loan-to-Value (LTV) ratios over 80%.
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1100 Title Charges
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1100-May
cover a variety of services performed by the title company and others.
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1101
Settlement of Closing/Escrow Fee
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1101-The
fee paid to the escrow company for handling all the financial transfers
and payments associated with the transaction.
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1105
Document Preparation Fee
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1105-Pays
for the service of creating your loan documents.
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1106
Notary Fee
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1106-Several
documents you sign during the loan must be notarized.
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1108
Title Insurance
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1108-Guarantees
that your home has no other liens on the property and guarantees your
undisputed ownership. All lenders require that you have title insurance on
the home.
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1200 Government
Recording Transfer Fees
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1200-Fees
paid by either the buyer or seller at the time the purchase agreement is
executed.
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1201
Recording Fees
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1201-To
create a public record of your legal ownership of the property, the
lenders notify the county government to record the transaction. The
recording fee, which varies by state, is paid to the county.
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1202 City/County
Tax/Stamps
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1202-Stamps,
affixed to the deed, showing the amount of transfer tax paid. Most states
stamp the deed rather then actually affixing a stamp. Many localities
collect a transfer tax whenever a property changes hands.
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1300 Additional
Settlement Charges
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1300-May
include a Pest Inspection and Flood Certificate.
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