What are the Closing Costs for Foreign National Mortgage Loans?

Closing costs for foreign national mortgage loans vary depending on the type of loan you qualify for and the lender providing the loan. This article will cover the basic closing costs and fees that you’ll need to understand prior to taking out a foreign national mortgage.

Below are the most common closing costs for foreign national mortgages:

• Loan Origination Fees —The origination fees will be reflected as a percentage of the loan amount, known as “points.”
  Ex: 1 point = 1% of the loan amount.
• Discount Fees — To buy the interest rate down — such as from 6.50% to 6.00% — you could pay a discount fee to lower your interest rate.
• Underwriting Fees — It's common for most conforming, conventional, and bank portfolio lenders to charge an underwriting fee. 
• Appraisal Fees — Borrowers will usually pay the appraisal fee directly to the appraisal management company (AMC). That cost will be reflected on the estimated closing statement and final closing statement.
• Title Insurance (for both homeowner and lender) — Title companies insure the lender’s position on the title to the property, and also the homeowner’s interest in the property.
• Escrow Fees — A neutral third-party settlement provider handles the money moving between the parties involved in the transaction.
• Document Preparation Fees (Doc Prep) — You’ll find this more commonly with hard money loans than long-term loans.
• Notary Fees — Notaries can either meet you at the title or escrow office, at your home, or another location. With foreign national borrowers, it’s not uncommon to receive and notarize documents directly at your home country’s consulate.
• Government Recording Fees — In order to title your property, city, county and state entities may charge a fee to record your purchase documents (Grant Deed or Warranty Deed) related to the sale of a property and your Deed of Trust (mortgage).
• Flood Certification — Lenders often charge a small “flood cert” fee.
• Homeowners Insurance (1 year’s premium paid upfront) — Conforming, conventional, and bank lenders may require that you pay an entire year’s premiums upfront and establish an impound account, which tacks on your taxes and homeowner’s insurance to your monthly mortgage payment. Hard money lenders will require you to pay 12 months of insurance premiums for a 12-month bridge loan.

It's important to note that this isn't the full list of closing costs for foreign national mortgage loans. There could be fees for translation services and shipping expenses that the lender or escrow company charges at closing. Actual closing costs will vary depending on the lender, the type of loan, and your unique financial and employment circumstances.