Common Escrow Fees

According to the California Land Title Association closing costs can amount to approximately 11% of the total sales price. Closing costs usually include real estate commission, loan fees, escrow charges, title insurance premiums, pest and other inspections and costs for other services provided during the escrow process. Some common escrow fees are:

LOAN ESCROW FEES   These are the fees the lender charges to process, approve and make the mortgage loan.

APPRAISAL ESCROW FEE  This charge pays for a report of property value for the lender typically made by an independent appraiser. The property and neighborhood is inspected and sales prices of comparable properties are considered along with other factors to determine the value.

CREDIT REPORT ESCROW FEE  A credit history is important as the lender will use this information to help their decision in whether or not to approve your loan and how much money to lend you.

PMI ( MORTGAGE INSURANCE)  On some larger loans lenders may require mortgage insurance which protects them from loss due to payment default by the borrower. It may be required as a lump sum premium or a first of monthly premiums at the time of closing.

MORTGAGE INSURANCE APPLICATION FEE  Some lenders will charge for the processing of an application for mortgage insurance.

LENDERS INSPECTION FEE This charge covers inspections typically of newly constructed houses.

INTEREST  Lenders will require that borrowers pay the interest on the loan from the date of funding to the beginning of the period covered by the first monthly payment.

HAZARD INSURANCE PREMIUM  This is for homeowners insurance which covers the borrower and lender against loss due to fire, windstorm and natural hazards. It is a requirement of the lender and a full years premium  is paid at the close of escrow. In some cases, if your property has been identified by FEMA to be in a flood zone; flood insurance may be required.

ESCROW FEES  There will be fees for the escrow services performed by the escrow officer. It can be negotiated between buyer and seller as to who pays it. Calculate Anchor Escrow's fees here

ESCROW TITLE FEES  These fees relate directly to the transfer of title; fees for recording, transfer taxes , title insurance and some costs incurred or charged by the title company. There is an owners policy and lenders policy and the person responsible for all or part of the title fees depends on how the sales contract is drawn up.

RECORDING AND TRANSFER FEES  The sales contract or local custom will determine how the fees are split between buyer and seller. See our “ Who pays What” page for more details.

ESCROW SERVICES  Fees are charged for the services performed by the escrow officer. These fees are negotiated as part of the sales contract between buyer and seller as to who pays what part of the fee.

PEST AND OTHER INSPECTIONS  It is always recommended that a buyer have the home inspected. Inspections for termites may or may not be part of the sales contract. Payment of these are determined by custom or by the sales contract. Again, please see more detail on “Who pays What” page.