An Explanation Of Lender Closing Fees In PA

When you obtain financing for a home purchase, you will incur many different expenses related to the mortgage. These are normally called closing costs, but there actually include various types of fees. This blog provides an explanation of lender closing fees in PA.

Lender Closing Fees


Points are a way for buyers to secure a discounted mortgage rate. It involves buying down the rate to reduce payments for the length of the mortgage. This option can be helpful for homeowners who require a lower payment in order to secure approval.

Origination Charge

Origination charges vary from company to company. It normally covers the cost to process financing for a buyer.

Appraisal Charge

An appraisal is required by a mortgage company but generated by a third party. Appraisals calculate the market value of a home and its condition. A loan will not receive approval without a acceptable appraisal

Property Tax Services

Real estate taxes are typically included in your recurring mortgage payment. The lender receives a specific amount from homeowners each month and places those funds in an escrow account. When the tax bill is payable, the applicable amount is withdrawn from that escrow account. Many lenders will require a up-front fee to create this tax service.

Flood Certification

Homes located within a flood zone will require flood insurance. Lenders request a flood certificate to determine the status of a home. Flood certificates are historically charged to the borrower.

Credit Report

Credit reports are how lenders assess credit standing and applicable interest rates. There is a cost for requesting credit reports from the 3 major credit bureaus. Lenders will frequently pass on this expense to home buyers.

Additional Lender Closing Fees

The lender closing fees detailed above are merely sampling of the fees that may be billed by your lender. For a comprehensive list of possible fees that you may incur, or for assistance with other real estate or financing topics, contact Pedro Teixeira at FIT Credit by calling 215-613-8130 or emailing