Prepaid Items and Closing Costs

Prepaid items and closing costs are only discussed when you're ready to sign the contract for a mortgage. So before closing the deal, it would be best for you to know your mortgage’s breakdown so you won’t be caught off-guard.

Prepaid Items

These are costs that are related to the home itself. Your lender may require these payments before their due date. Conversely, you may continue to pay these costs throughout your loan’s lifetime or as long as you own the home.

Real State Taxes

Real estate taxes are charged by the local counties and municipalities of the U.S. States like Oklahoma. It may vary depending on the process of assessing the property’s value or even the county’s jurisdiction.

Mortgage Interest

The interest that is charged on a loan that was used to purchase the property.

Home Association Dues

Home association dues are dues paid by each homeowner in the community to maintain amenities such as pools and recreation areas. They are not always required.

Mortgage Insurance Premiums

The charges paid by homeowners for FHA loans that can be deducted the same way as home mortgage interest.

Discount Points

Discount points can be used to lower the amount of interest that homeowners has to pay on succeeding payments.

Closing Costs

These charges are mostly comprised of fees and are related to the estate transaction itself. Your lender will explain these costs before you sign the agreement.

Loan Origination Fees

The fee charged by the mortgage lender to process a loan application.

Appraisal Fees

Appraisal fees are charges that homeowners have to pay for someone to determine the value of their house.

Title Search Fees

Title search are fees that title companies charge to search for the public records on the property. A preliminary title report will be sent to the homebuyer as soon as the search is finished. If there are any issues with the title, title companies will point them out to the homeowner.

Survey Fees

Survey fees are charged by licensed surveyors to get the exact measurement of a real estate property. It resembles a map showing all locations of boundaries or even buildings within the property’s vicinity.

Deed Recording Fees

These are fees charged by a government agency to record or register real estate properties that have either been sold or put on sale. Once it has been recorded, the file can then be viewed as a part of the public record.

Credit Report Charges

Is when a previous property has been tagged as “charge off.” When a property has a status of “charge off,” the debt is still owed but the loan is already closed. The only way to change status of the loan from “charge off” to “paid charge off” is when the homeowner pays the remaining balance in full.