This is a YouTube video titled "Third Party Fees" featuring Derek McGowan from Mac Home Mortgage explaining the various third party fees involved in the home loan process, including title company fees, appraisal fees, homeowner's insurance, and escrow accounts. The content is an informative talk aimed at clarifying common confusions about these fees, recorded on October 30, 2021.
Hey guys, Derek McGowan with and Mac Home Mortgage here to talk about third party fees. Now these do get some confusion on the home loan process, which is why I love talking about this topic. To clear that up a little bit, let's go down the list. Title company, they probably have the largest amount of third party fees. They've got different endorsement and title insurance and recording fees. Now keep in mind your realtor does play some sort of a role here. So something to keep note as they do select the title company which has the largest amount of the fees. Then if your transaction needs an appraisal, a randomly selected local appraiser would take the job. They have a fee for doing the appraisal report. Third, you get to select your homeowner's insurance provider. But no matter who it is, they want the first 12 months due at closing. Something to make note of there and also to be prepared for. And then the final piece would be your escrow. Generally, you know, most homeowners escrow their taxes at insurance, which means they pay a monthly amount to cover the taxes and insurance. And then when that bill becomes due later in the year, the built up amount pays for it. So they kind of chunk away at it instead of a lump sum all at once. To start off your escrow account, two to three months taxes and insurance can be expected. So as you can see, there's a lot of things coming from different areas. Your lender reports and accounts for it all, but they all are outside of the lender. So that's why there's estimates along the way. Until we get those exact numbers in.
