Closing a loan can seem confusing, but it is actually very simple when you understand the fees that you will be charged when you get there. Most companies don’t tell you this very early in the process and may confuse you purposely until you get to closing, but at PURE Mortgage we have taken the time to define the fees below.

We will also provide you with a Truth in Lending Statement that will show you what fees and charges apply to you at least 24 hours before closing. It is your legal right to receive this statement from any lender.

Origination Fees/Points
Based on the loan product and rate you choose, you may pay points. One point equals one percent of the loan amount.

Appraisal Fee
All lenders require that the home that they are financing match the amount of the loan to minimize their risk. As a result, the qualified appraiser that was sent out by us will be added to your closing costs.

Title Insurance Fees
The Title Company conducts a search that is required by law to ensure that the person selling you the home actually owns it and has the right to transfer it to you per the Real Estate Purchase Contract. In the event that liens are eventually discovered against the property, the title insurance protects the lender from loss.

Homeowner's Insurance
Homeowner's insurance is required to protect against property damage due to hazards, such as fires. At PURE Mortgage we work with several reputable insurance agencies, and can help you find a qualified insurance agent. Call your PURE Mortgage Loan Specialist for more information.

Credit Report Fee
Because the companies that house and store credit reports charge a fee for obtaining your credit report, this will appear on your settlement statement.

Pro-Rated Property Taxes
These are taxes paid to the state of Utah for your property. The property tax year begins on November 1 and the monthly payment amount is based on the purchase price of your home. The seller of the property is required to pay the taxes up to the settlement date and you, the buyer, are required to pay them thereafter. Your Loan Specialist will explain this further to you before and during closing, if necessary.

Mortgage Insurance
Generally, a loan with a down payment of less than 20% requires mortgage insurance, which protects the lender if a borrower defaults on a home loan. If you are putting less than 20% down, mortgage insurance will be applied.

Prepaid Interest
This amount pays the interest due from the date of closing to the end of the current month, or sometimes through the following month, depending on what day you close your loan.

Additional Fees
You may be required to pay other fees including Wire Fees, Tax Service, Survey Costs, Flood Certification, Escrow/Settlement Charges, Messenger Fees, Sub-Escrow Fees, and Transfer Tax. Speak with your Loan Coordinator about these additional fees if they apply to your loan.