Points
While looking for financing for your Miami real estate property, also check for points. Points are a prepayment of the interest rate. Basically, one point is equal to one percent of the loan amount. This means that by buying points, you are generally pulling down your monthly mortgage payments. Depending on your lender, you may have to pay for some points.
Loan origination and application fee
Loan origination fee is what you pay to cover the costs of the time needed to finalize and review the loan you need for your Miami real estate property. This is not tax deductible.
Loan application fee, on the other hand, covers the payables when you apply for a loan. This fee will be used to cover the expenses of verifying your financial documents and other requirements, including income, credit, appraisal and others. When you are applying for the loan, be sure to check what the lender charges with the loan application.
Interest payment
This is dependent on the date of closing. Nevertheless, you may want to save money to pay for the interest for the month you close on the house you bought.
Documentation
Aside from the fees of applying for the loan, you also need to pay for loan documentation. Document preparation fee is often a fluff fee, especially if you’ve already paid for the application fee. You need to check the fees included in this set to know if what you're paying is excessive or not.
Credit check
Credit check fee is usually included in the application fee. However, your lender may need to charge you extra to run a credit check.
Appraisal
Before you get the loan you need for your Miami real estate property, the lender will require an appraisal. While your lender will arrange for this requirement, you need to pay for the service. The price depends on the size of the property, meaning the larger the property the bigger the fee. This will not go into your lender’s pocket; the lender needs this to pay the appraiser.
Mark Michael Ferrer
Miami Real Estate
Keywords: Miami, Miami home, Miami real estate, Miami real estate market, real estate