Closing on a Non-Qualified Mortgage (Non-QM) or specialty loan involves understanding the comprehensive range of fees and costs associated with your mortgage. These loans offer flexibility tailored to unique financial situations, such as self-employment, non-permanent residency, or complex income structures. It’s crucial for borrowers to be aware of all associated expenses to make informed decisions.

Compared to conventional or FHA loans, which follow stricter guidelines and typically have standardized fee structures, Non-QM loans may entail additional fees due to their specialized nature. These loans cater to borrowers who may not qualify for traditional financing due to unconventional income sources, unique property types, or other non-standard factors.

At Cazle Mortgage, we prioritize transparency in detailing the fees and costs related to your Non-QM or specialty loan. Understanding these expenses upfront allows you to budget effectively and proceed with confidence throughout the mortgage process.

1. Origination Fees

• Explanation: Origination fees cover the cost of processing your loan application, underwriting the loan, and preparing the necessary documentation.
• Cost Range: Typically, origination fees for Non-QM loans can range from 1% to 3% of the loan amount, depending on the complexity of the loan and lender policies.

2. Appraisal Fee

• Explanation: An Appraisal fee is paid to a licensed appraiser to assess the value of the property you intend to purchase or Refinance. This fee ensures the property meets the lender’s valuation requirements.
• Cost Range: Appraisal fees can vary but generally range from $300 to $800, depending on the property type and location.

3. Credit Report Fee

• Explanation: We obtain a credit report to assess your creditworthiness and determine the terms of your loan. This fee covers the cost of obtaining your credit history.
• Cost Range: Credit report fees typically range from $25 to $50 per applicant.

4. Title Insurance

• Explanation: Title Insurance protects you and the lender against any issues related to the property’s Title, such as ownership disputes or liens.
• Cost Range: Title Insurance costs vary based on the property value but generally range from 0.5% to 1% of the purchase price.

5. Recording Fees

• Explanation: Recording fees are paid to the local government for recording the deed and other legal documents related to the property purchase or Refinance.
• Cost Range: Recording fees vary by location but typically range from $50 to $500.

6. Closing/Settlement Agent Fees

• Explanation: Closing or settlement agents facilitate the Closing process, including the transfer of funds and documents between parties.
• Cost Range: Fees for Closing agents can range from $300 to $1,000 or more, depending on the complexity of the transaction and local practices.

7. Prepaid Expenses

• Explanation: Prepaid expenses include items like property taxes, homeowners insurance, and prepaid interest that may be due at Closing or shortly after.
• Cost Range: Prepaid expenses vary widely based on the property location and timing of the Closing.

8. Legal and Documentation Fees

• Explanation: Some Non-QM loans may require additional legal or documentation fees, especially for complex transactions or specialized loan products.
• Cost Range: These fees can vary significantly depending on the legal requirements and complexity of the transaction.

Navigating the fees and costs associated with Closing on your Non-QM or specialty loan requires attention to detail and expert guidance. Our dedicated team at Cazle Mortgage is here to provide personalized assistance and transparency throughout the Closing process. Contact us today to learn more about our Non-QM loan options and discuss how we can help you achieve your financial goals with clarity and confidence.