Origination Fee – Payment to lender to evaluate your credit and underwrite and process loan.
Discount Points – Paid to lender at closing to reduce interest rate over life of the mortgage.
PMI or Mortgage Insurance – Required if down payment is less than 20%. Protects lender if you default.
Appraisal Fee – Paid to appraiser to confirm home’s fair market value.
Title Search – Covers cost to confirm seller owns the property and it is free from liens.
Title Insurance – Protects lender and (optionally) you if title claim resurfaces later.
Termite Inspection Fee – Inspection required to certify home is free of termite damage.
Survey Fee – Charge to verify property boundaries.
Closing or Settlement Fee – Paid to title company, attorney, or escrow company that conducts closing.
Recording Fee – Paid to state to record transfer of property from one owner to another.
Transfer Tax – Paid to state based on the amount of the mortgage.
Prepaid Interest – Covers interest due between closing and first mortgage payment due.
Prorated Property Tax – Covers property taxes from date of closing to end of tax year.
Homeowners’ Insurance – Typically you will pay first year up front at closing.
Homeowners’ Association Transfer Fee – Paid on properties governed by associations to transfer ownership documents to you.
Initial Escrow – Lender may require first two months of next year’s homeowners’ insurance, flood insurance, and property taxes to build up reserve.