Apartments for rent in Tampa Florida
CLOSING DISCLOSURE PAGE 2
Alright, let’s break this second page down piece by piece! Think of it like a pizza—you've got to know what's on each slice before you dig in. This page shows the cost to "close" on a property, which is just a fancy way of saying it's the final bill before you officially own the house!
Welcome to the loan cost section! Think of this as the bill for borrowing money to buy the house. You’ll notice there are three columns for each fee. It’s like a "Who Pays?" game... either you, the borrower, the seller, or some third party will foot the bill. Who pays what? That’s all decided during the negotiations when you made your offer to buy the house. This is why having a smart, real estate agent is like having a superhero on your team... they can either save you money or cost you some serious cash!
- Origination Charges - These are the fees paid (either by you or the seller) to kick-start the loan. It’s like paying the entry fee to a roller coaster... you’ve gotta pay to get on the ride!
- Application Fee - This is the charge just to submit your loan application and get the ball rolling. Yep, you’re paying for someone to stamp “approved” on your papers.
- Underwriting Fee - This one’s for the person who acts like a detective. They dig into your credit, job history, and finances to see if you’re eligible for the loan. It’s like someone reading through your report card to make sure you’re good to go!
- Loan Amount Points - If you want to lower your interest rate (the cost of borrowing), you can pay something called “points” upfront. Think of it like buying a power-up in a video game—you pay a little now to make things easier later. One point equals 1% of the loan. So, if you borrow $162,000 at a 3.875% interest rate and want to pay 0.25% in points, that would cost you $405. Easy math, right? Check the chart below to see how it all works!
This is the part where we break down the fees you, the borrower, have to pay when the lender picks the vendors for you. It’s kind of like when your parents choose where you’re getting pizza from... you don’t get to pick the place, but you still have to pay for the pizza.
- Appriasal Fee - This is the fee you, the buyer, pay to an appraiser so the lender can figure out how much the house is worth. Think of it like hiring a judge to decide if the house is worth the price you want to pay. The lender needs this to make sure they’re not lending you more money than the house is really worth.
- Credit Report Fee - The lender’s underwriting team uses this fee to check if you’re worthy of a loan. It’s kind of like when a teacher checks your homework to make sure you’ve been doing everything right!
- Flood Determination Fee - This fee helps the lender figure out if the house is sitting in a flood zone. It’s like checking to see if your house is parked near a giant water slide... if so, they need to know!
- Flood Monitoring Fee - This one-time fee is for the lender to double-check if the property is in a flood zone and whether you’ll need flood insurance. Basically, it’s their way of making sure your house won’t turn into a floating boat.
- Tax Monitoring Fee - This is a fee that makes sure the property taxes on the home are accurate. It’s like the lender doing a quick math check to make sure all the numbers add up right before closing.
- Tax Status Research Fee - This fee goes to a service provider that keeps an eye on your property tax payments. They let the lender know if there’s any trouble with your taxes... kind of like a watchdog that makes sure nothing goes wrong with the payments!
This is the part where we sum up the money you, the borrower, need to bring to the closing table. Think of it like packing your suitcase for a trip... you’ve got to make sure you have everything you need before you can board the "new home" plane!
- Pest Inspection Fee - This is the fee you pay to a termite inspector to make sure there aren’t any unwanted creepy-crawly roommates in your new house. Think of it like hiring a bug detective to check if termites are throwing a secret party in the walls!
- Survey Fee - You’ll pay this fee to a surveyor who figures out where your property starts and ends. It’s like drawing a big line in the sand to mark your turf... so you know exactly what’s yours!
- Title Insurance Binder - This is like temporary insurance while the house changes hands. It protects both you and the seller during the "handoff" period, especially if there’s a gap in anyone’s home insurance. Imagine it like wearing a helmet while passing the house baton!
- Lender Title Insurance - This fee protects your lender (not you, just them!) against any problems with the property’s title. It’s like giving the lender a shield in case someone pops up saying, “Hey, I own that house!”
- Settlement Agent Fee - This fee goes to the person who handles all the behind-the-scenes action to make the sale happen. They’re like the director of a movie, making sure everyone knows their lines and that all the important paperwork is ready. Here’s what they do:
1.Prep and sign all the papers.
2. Move money between you, the seller, and others.
3. Collect legal documents like deeds and title forms.
4. Check the title to make sure there’s no mess.
5. Give advice on legal stuff.
6. Make sure the deed and mortgage are recorded.
7. Be a witness and notarize things.
8. Coordinate meetings to get everyone on the same page.
- Title Search - This fee is for checking the property’s history to make sure there are no hidden problems, like someone else claiming to own it or unpaid bills attached to it. Think of it as a background check for the house—just to make sure everything’s squeaky clean!
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- Loan Cost Subtotals - This is the subtotal, so far, from the above:
Origination Fees
+ Services Borrower Did Not Choose
+ Services Borrower Did Choose
This is the part where we talk about the local government fees that either you, the borrower, or the seller have to pay. It’s like the ticket fee for a school play... you’ve got to figure out who’s covering the cost during the first chat between you and the seller. So, whether you’re splitting the bill or one of you is picking up the tab, it all gets decided in the early negotiations!
- Recording Fees - These are the fees you’ll need to pay to have the deed officially stamped and recorded at the county office. Think of it like getting your trophy engraved after winning a big game—this is how you make it official!
- Transfer Tax - This is a fee charged by the government to legally hand over the keys when a home is sold. It’s sometimes called a deed transfer tax or documentary stamp tax, which sounds fancy! It’s like a one-time ticket fee to get your name on the “new owner” list. Usually, the seller is the one who has to pay this fee, but just like deciding who gets the last slice of pizza, you can negotiate who pays it when you’re making the deal. Now, here’s the tricky part: every state has its own way of figuring out how much this fee will cost. The formula is: (Loan Value x State Percentage). For example, in sunny Florida, the percentage is 0.7%. So if you’re buying a house for $500,000, the calculation would look like this: ($500,000 x 0.007) = $3,500. That’s a big chunk of change, so keep an eye on it when you’re budgeting for your new home!
Prepaids are like the “sneak peek” fees you have to pay! They include the interest on your loan from the moment you close on the house until the end of that month. For example, if you close on your loan on April 15th, you’ll need to pay the interest for those last 15 days of the month... right up until May 1st. It’s like paying for a movie ticket to see a sneak preview of a blockbuster film before it officially hits the theaters!
- Homeowner's Insurance Premium - This is the money you pay to your home insurance company to keep your property safe for a whole year. Think of it like buying a superhero cape for your house... it protects it from all kinds of dangers, like storms or accidents!
- Mortgage Insurance Premium - This type of insurance is like a safety net for the lender. If you take out a loan backed by the Federal Housing Administration (FHA) and you have a low down payment, you’ll need to pay this fee. It helps the lender feel more secure, like giving them a cozy blanket when they’re feeling chilly. But if you have a conventional loan, this amount is $0... so it’s like getting a free pass on a ride at the amusement park!
- Prepaid Interest - These are charges you need to cover at closing for any daily interest that adds up on your loan from the day you close until your first monthly payment. Imagine it’s like paying for snacks at a movie before you get to watch it... you want to enjoy the show without worrying about what you owe!
- Prepaid Property Taxes - Here’s the deal: the seller has already paid the property taxes up to a certain point in the year. If they’ve paid for the entire month and you close in the middle of that month, you’ll have to pay the seller back for the days you own the house. For example, if the seller paid the taxes up to June 30 and your closing date is June 15, you owe the seller for June 16 through June 30. In this case, you’d have to give the seller a refund for those days, which could be around $631.00. It’s like splitting the bill for pizza after sharing a slice... after all fair is fair!
This is the part where you, the buyer, pay some money upfront that covers two months of homeowners insurance and property taxes. Think of it like putting money in a piggy bank that’s specially labeled “Escrow”! This piggy bank keeps your money safe until it’s time to pay those bills, so you don’t have to worry about them later. It’s like saving up for a big birthday party—you want to make sure you have enough for the fun!
- Homeowner's Insurance - This is the last prepaid cost you’ll need to pay, and it’s like your house's superhero cape for the future! It helps protect your home from unexpected disasters, making sure it stays safe and sound.
- Mortgage Insurance - This is the amount you’ll pay at closing to kickstart your escrow account for mortgage insurance. Think of it as a security blanket for your lender... if you don’t make your payments, this insurance helps cover them. It’s usually required when you make a down payment of less than 20% of the home’s price. But since you made a big deposit, congratulations! You’ve waved goodbye to mortgage insurance... your large deposit has made the lender feel much safer, like a kid with a sturdy life jacket on a boat!
- Property Taxes - The lender wants you to set aside at least two months' worth of property tax payments in your escrow account. This is like having a piggy bank just for taxes, so you won’t accidentally forget to pay them later! It keeps your property safe from getting a “tax lien” sticker slapped on it, which would be like having a big warning sign on your house saying, “Watch out, I haven’t been paid for!”
This is the part where both you, the buyer, and the seller get to pay some random fees to close the deal. Think of it like paying the toll before crossing the finish line!
This is the part of page two that adds up all of the subtotals so far of the fees from this page.
- Other Cost Subtotals (E+F+G+H) - Lets add these sections up and we get a subtotal of $5018.05. This is what, you the borrower, will pay. Well not exactly the same figures, but you get the point.
- Closing Cost Subtotals (D + I) - This is a subtotal from te above sections of D and I. Section D is the subtotal from page 1, section I is the subtotal from page 2. So this section is labeled SECTION J.
- Lender Credits - This section will show any credits the lender will extend to either to the borrower, like discounts.
