Definitions of Closing Costs

Appraised Value

• An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surroundings.

Assumption Transfer Fee

• A fee assessed by the lender to buyer to assume the present loan.

Credit Report

• A report on the past ability of a loan applicant to pay installment payments.

Document Preparation

• A fee charged by an attorney for preparing legal documents for a transaction.

Escrow Fee

• A fee charged by the title company to service the transaction, to escrow monies and to cover document costs. The amount varies with company; usually split between buyer and seller.
  

Escrow / Impound Account

• Funds held by the lender for payment of taxes and insurance when due. Usually does not include maintenance fees.

Homeowners Insurance

• Protects the property and contents in case of loss; must be for at least the loan amount or for 80% of the value of the improvements, whichever is greater.

Earnest Money

• Do we have the earnest money check from the buyer? Does it match the dollar amount provided for in the contract? Is it made payable to South Land Title Company?