Do The Number of Points Charged Fluctuate?

Yes. If rates on mortgage loans are lower than other investments (such as stocks, bonds, etc.) then funds will be drawn away from the mortgage market. Also, when there is a heavy demand upon the money market because of business needs, military requirements or other government borrowing, the result is that
money for home mortgages becomes scarce and more expensive. When this occurs, more points can be charged. Points balance the market. Points are not set by government regulation but by each lender individually.

Is FHA or VA Financing Unfair to Sellers?

No. Homes can sell faster because more buyers can qualify with the lower down payment requirement, lower interest rate, or long term loans with lower monthly payments. The purpose of these loans is to provide purchasers the opportunity to buy homes with minimal cash investment thus providing a bigger market for sellers.

Are Points Deductible for Income Tax Purposes?

Points on a home are deductible if they are generally charged in the geographical area where the loan is made. If you are in doubt about points being deductible you should contact your tax return preparer.

Other charges will most likely include an appraisal fee (to make sure the house is worth what you're paying ! for thereby assuring the lender that the house has enough value to cover the loan amount), and a credit ! report. If you are required to pay PMI (Private Mortgage Insurance for less than 20% down), a charge will be ! included since the lender obtains the insurance for you. If you are assuming the seller's mortgage rather than getting a new loan, an assumption fee will be listed.

Items Paid In Advance To The Lender

Items paid in advance generally include mortgage interest (from the closing date and the date your first payment is due), the first year's hazard insurance, and, if required, the first year's PMI premium.

Deposits Or Reserves With The Lender

Extra amounts (usually 2 months) for hazard insurance, property taxes (this depends on the time of year you ! close the transaction), and PMI (if required). If you are buying a condominium or townhouse, you may also have to pay some portion of the homeowner's association fees.

Title Charges

Title charges include fees for the title search and fees for preparing the documents for closing and transfer of title. There will be a one time fee/premium for the owner's title insurance and a one time fee/premium for the lenders title insurance. For more information, please refer to the title and escrow section.

Recording and Transfer Charges

These fees are for recording the Deed of Trust (mortgage) and the grant deed. There may also be transfer taxes which are fees for transferring property, and notary fees.

Closing

Before closing, any issues (such as problems you found during the walk through) should be resolved. The closing becomes a formality in which your Fidelity National Title Escrow Officer will explain the documents and will ask you to review and sign them.
As a buyer, you'll sign a note in which you agree to pay back the mortgage loan and pledge the house as security until it is paid off. You'll also sign a number of other documents that are required by the government and acknowledgments that you have received all the information you should have about the loan and the transaction. Don't be surprised if some of the documents seem repetitive.