Michigan Mortgage TermsAppraisal Fee
An appraisal is a necessary document to show the lender a reasonable estimate of
value for loan purposes. A charge is made for the appraisal. FHA and VA set the
maximum charges for loans that go through their agencies. Conventional
appraisers can set their own charges. Assessments
Charges for unpaid improvements from the county or city, e.g. sidewalks, sewer
lines or an annual fee for the homeowners' association, etc.
Assumption Fee
A fee for processing documents when one person assumes the mortgage loan of another.
Attorney Fee (Documents)
This is a charge for all the paperwork that is required by the mortgage company.
The attorney represents the mortgage company / lender and not the borrower or
seller. Researching the title to the property is done for the lender's protection.
Audit Authorization
If asked for this, you acknowledge that you have provided tax returns as part of
your loan package and that the lender will audit within a certain period after closing.
Borrower's Certification and Authorization Letter
It's one more piece of paper that says your lender can verify what you've said,
that you didn't misrepresent you status, and so on. See Borrower's
authorization. Borrower's Escrow Instruction
The company conducting escrow business provides you with a breakdown of all the
charges related to the transaction. On the credit side, you'll see the amount of
money being loaned to you. On the debit side, you'll see the amount that you owe
to the lender and to others who have provided mortgage-related services to you.
There is a balance on the credit and debit sides and those funds are required to
match. On the credit side you will have the loan from the bank or seller and
contributions, the deposit you gave at the time you wrote your original purchase
contract, and your down payment and your closing costs which you bring to
escrow. On the debit side, you have a seemingly endless list of charges that
should have been disclosed to you along the way.
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