"All-in-One" Pricing of Settlement Costs

Some lenders have bundled most of their settlement costs into a single price. Generally, they combine the following fees:

1. application
2. origination
3. underwriting and processing
4. points
5. pest inspection
6. appraisal
7. credit reports
8. lender’s attorney
9. flood certification
10. title search and title insurance
11. recording
12. and fees for other tax services

This all-in-one price, however, does not include all of the fees needed at settlement. You will also need funds for the following:

1. prepaid interest (based on the day of the month you settle)
2. mortgage and transfer taxes (determined by your state or local taxing agency)
3. private mortgage insurance (if needed)
4. homeowner's (hazard) insurance
5. flood insurance (if needed)
6. and reserve (or escrow) funds for property taxes and homeowner's insurance.