Irish Central Community News is pleased to continue with our bi-weekly financial column, courtesy of Sean O’Sullivan of Arlington Financial. This time around Sean tackles Closing Costs.

Loan Originating Fee - Is charged by some brokers and lenders and is the main way they are paid for their service.

Application/Processing Fee - Is to cover its loan processing costs.

Loan Discount Points - Often referred to as "points" or "discount points," this is a one-time charge from the lender that you pay to buy down the interest rate on your loan.

Yield Spread Premium - This is a payment from the lender not the borrower to the broker for placing your loan with them.

Courier Fee -The costs of sending documents to various parties using couriers or express mail services.

Wire Transfer Fee -When your loan funds; it is a common practice for the lender to wire the funds to the settlement provider (escrow holder, Title Company, or attorney).

Appraisal Fee – Is he cost of a professional appraiser evaluating your home to estimate its fair market value.

Credit Report - Used by the lender to review your credit history and help determine whether to approve your application.

Flood Certification -This fee covers the cost of a report to determine if the property is in a flood-risk area.

Settlement of Closing Fee - This fee pays for the services of the escrow or settlement agent that handles all the financial transfers and payments associated with the transaction.

Notary Fee - This fee covers the cost of a licensed notary public to certify that the individuals signing documents are whom they claim.

Title Insurance: Owner's Coverage

Title insurance guarantees that your home has no other liens. The title company will check that no other entity has a lien, unpaid claim or other restriction on your ownership of the property. The insurance protects the owner in case a lien does exist that the search did not uncover. The owner's policy is not necessary in a refinance situation as that policy remains in full force and effect for as long as the owner owns the property.

Title Insurance: Lender's Coverage

Lender's coverage also insures against the possibility that there is an unknown lien on your property and ensures your undisputed ownership. The difference is that it protects the lender and only insures you for the loan amount (not the entire value of the property).

Recording Fee - Once your transaction closes; your mortgage or deed of trust is recorded at the county recorder's office to make your transaction a matter of public record.

State Mortgage Tax - This is a tax charged by some states as an additional means of collecting tax revenues.

For any additional information, or questions regarding other subject matter, contact Sean O’Sullivan at Arlington Financial. Phone: 914-793-1122, email: