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The Ultimate Guide to Choosing the Right Mortgage Broker for Your Home Loan
Choosing the right mortgage broker for your home loan
4 min
Once you’ve been house hunting for a while, the same terms start to pop up consistently: closing costs, down payments, mortgage insurance, etc. After appraisal fees, the fees that confuse people the most are title and escrow fees.
Title & escrow companies are responsible for issuing title insurance. They're also in charge of managing the movement of funds and preparing closing documents during the home buying process.
Generally, title and escrow fees are paid on closing day along with other closing costs. Closing costs add up to about 3% of your loan amount. But title and escrow fees can vary depending on the title company you choose to work with.
At Nu World Title, they price breakdown is as follows for single family homes:
One thing to keep in mind is that condos and properties that are a part of a Homeowner's Association are subject to an Estoppel Fee, which is charged directly by the HOA.
If you’re looking to buy a condo, you’ll have to pay an additional fee called the estoppel fee. Estoppel fees are paid to check on the current status of the property you want to buy, and its current standing with the HOA. This information needs to be obtained before closing so that it can be dealt with appropriately. Once paid, the estoppel letter is good for thirty days, and lets you know whether or not the current owner of the property owes the HOA money.
Estoppel fees can range from about $100 and all the way up to $650. There are also additional fees charged for expedited requests or if another estoppel letter is needed in case the first one expires.
Home buying is a team effort! You need an experienced group of real estate professionals who can properly coordinate all of your important transactions. While title transfers may seem like a simple transaction, a lot can go wrong if you don’t have a good title company on your side.
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