settlement charges - Settlement charges are the costs or fees charged on the items necesasary to do the loan such as title fees, appraisal fees, origination fee etc..Sometimes these settlement charges can not be included in the loan. It can be a requirment that the custumer will have to bring the settlement charges to closing in order to close the loan.
Settlement charges also know as closing cost should be disclosed to you upfront thru the Good Faith Estimate. Brokers and Lenders have 3 days to provide you with this estimate under respa.
Settlement charges for both the buyer and seller are detailed on the HUD-1, also know as the Settlement Statement, which is provided to the buyer and seller at closing.
When buying or selling a home, payment of settlement charges can be negotiated to be paid either by seller or buyer. Also, depending on the area of the country local customs and laws may determine who is responsible for a specific settlement fee.
