What are closing costs?

Closing costs are the costs involved in processing and signing a mortgage application. These expenses include, among others:

• Origination Fees
• Mortgage discount
• Mortgage Insurance Premium [if applicable]
• Prima de seguro para póliza de vivienda
• Insurance premium for housing policy
  
• Credit Report
  
• Appraisal
• Title Study
• Measurement Plan [Plot Plan]
• Certification of location on the plan of flood zones
• attorney fees
• Stamps for mortgage deed or legal expenses

What are origination and discount fees?

 
They are part of the closing cost of a mortgage loan. The origination fees cover the administrative costs of the mortgage institution when processing the financing request. The mortgage discount is a charge to cover the cost of selling the mortgage in the secondary market. These expenses vary according to the interest rate of the mortgage.

How do you set the value of properties?

As part of the application review process, an appraisal of the property will be requested from a state-certified, bank-licensed professional appraiser. The appraisal is an estimate of the likely value of the property based on a physical inspection of the property and an analysis of three recent sales of similar properties in your neighborhood. The appraisal is prepared in uniform formats accepted by investors and insurers that include photos of the subject and comparables, location maps, and space distribution plan, among others.

What documents do I need to file?

These are some documents that you may require when filing a mortgage application:

• Property deed with legal description and presentation data
• Pay stubs covering the last 30 days
• Withholding Statements [W-2 form] for the last 2 years
• Bank statements of the last 2 months
• Purchase and Sale Option Contract [if applicable]
• Evidence of option payment to Seller [if applicable]
• Certified returns of the last 2 years, for self-employment
• Property Cadastre Number