Common Costs, Charges, and Fees

Products and services have a cost / fee, and real estate purchases involving hard money loans (loans secured by collateral to purchase and renovate a property for profit) are no different. These may include points, legal and application fees, in addition to the standard (title insurance and recording, property taxes which need to be paid in advance or which the seller has already paid and needs to have reimbursed) real estate transaction fees. Someone drafts the contracts and reviews them for the buyer, seller, borrower, and lender, as well as handling the actual closing; signing of the paperwork, disbursing the funds, and recording the transaction. . Here is a list of common expenses / fees found on a closing (HUD) statement in addition to the Purchase, and Renovation costs;

• Points (loan origination fee) to the lender

• Legal fee to the lender’s attorney

• Background and credit check fee

• Legal fee to the borrower’s attorney / legal representation

• Title insurance fee to the closing attorney / title company

• Loan closing services fee to the closing attorney / title company

• Loan recording services fee to the closing attorney / title company

• Appraisal fee to the independent appraisal company

• Property insurance premium to the insurance agent

• County loan recording fee to the county clerk

• Property taxes to the government

• Prorated interest (typically to the 1st of the coming month) to the lender

• *Renovation draw inspection fee to the inspector

• *Interest on the borrowed funds to the lender

• **Real Estate buying / selling agent commission by the seller

*During the project (not on HUD)

**At the time of sale