Fee Worksheet Template

Guidelines on Filling in Fee Worksheet

Filling out an Itemized Fee Worksheet requires attention to detail and an understanding of the charges involved in the loan settlement process. This document serves as an estimate of the various fees borrowers might encounter when closing a loan with service providers and investors. While it may look daunting at first glance, breaking it down into manageable steps can make the process smoother. Below is a step-by-step guide to ensure accurate completion of the form.

1. Enter the Date of the document preparation at the top of the form.
2. Fill in the name of the entity Provided By, such as the loan provider or financial institution.
3. Input the Subject Property address, including any relevant apartment or unit numbers.
4. List the names of the Borrower(s), ensuring to include all parties involved in the loan.
5. Specify the Loan Number assigned by the lending institution.
6. Enter the agreed-upon Interest Rate, expressed as a percentage.
7. Choose the Type of Loan from the options provided or specified by the lender.
8. Write down the Base Loan Amt (Amount), which is the initial sum borrowed, excluding any interest or fees.
9. Specify the Loan Program you are enrolled in, if applicable.
10. Detail the Term of the loan, typically expressed in years or months.
11. Enter the Sales Price of the property being purchased.
12. Calculate and enter the Total Loan Amt, which may include the base loan amount plus any additional fees or insurance premiums financed.
13. Under Estimated Closing Costs, input the specific amounts next to each category, including Items Payable in Connection with Loan, Title Charges, Government Recording and Transfer Charges, Additional Settlement Charges, and so on, based on the estimates provided by the lender or closing agent.
14. For sections that require calculations, such as loan origination fees or broker fees, perform the necessary calculations and enter the amounts.
15. In the section titled Estimated Reserve/Prepaid Costs, input the required amounts for items like daily interest, initial deposit into the escrow account, homeowners insurance, property taxes, etc., as specified by the lender.
16. Complete the Transaction Summary by filling in the Total Estimated Monthly Payment and the Total Estimated Funds Needed to Close, which includes principal and interest, purchase price/payoff, other financing, and other specified costs.
17. In the Closing Costs Summary, input the respective costs, including borrower paid closing costs, non-borrower paid closing costs, total credits, and total closing costs, as applicable.
18. Finally, check the boxes next to each charge to indicate who is responsible for the payment: the seller, broker, lender, other parties, or if the charge is paid outside of closing (POC).

Once the form is fully completed, it's important to review all the information carefully for accuracy. This form aids in providing a clear picture of the financial responsibilities at the time of closing, ensuring that all parties are well-informed of the estimated costs involved. Sharing this completed worksheet with all relevant parties can facilitate smoother communications and avoid surprises at the settlement.

When filling out the Itemized Fee Worksheet, individuals often make several mistakes that can lead to inaccuracies in the estimation of their settlement charges. These errors not only complicate the loan process but can also result in unexpected financial discrepancies at settlement. Awareness and understanding of these common mistakes are crucial for those navigating through the complexities of loan applications. Below are four commonly observed errors:

1. Failing to Accurately Estimate Fees: Many borrowers do not accurately estimate the charges likely to be incurred. This can significantly affect the total estimated closing costs, leading to surprises at the closure of the loan.

2. Overlooking Smaller Fees: Items such as the credit report fee or the flood certification fee might seem minor but can add up. Individuals often overlook these, not realizing their impact on the overall financial picture.

3. Incorrectly Filling Out the Reserve/Prepaid Section: Mistakes in calculating the reserves or prepaids, including homeowner’s insurance, property taxes, and initial deposit into the escrow account, are common. This area requires attention to detail to ensure the adequacy of funds set aside for these purposes.

4. Miscalculating the Total Estimated Funds Needed to Close: Perhaps one of the most critical sections, the total estimated funds needed to close, is susceptible to inaccuracies. Errors here can stem from incorrect sums of the individual components such as the purchase price, total estimated closing costs, and reserve/prepaid costs.

To minimize these mistakes, careful review, and detailed attention to all entries on the form are advisable. A thorough check to ensure that all applicable sections are completed accurately can mitigate potential issues. Additionally, seeking clarification on any uncertain items from service providers or investors can further safeguard against errors.

When handling the financing or refinancing of a property, several documents complement the Fee Worksheet form to ensure a comprehensive understanding of all associated costs and fees. Each of these documents plays a crucial role in providing transparency and details about the financial responsibilities when securing a loan or mortgage.

• Loan Estimate: This form provides an estimate of the loan terms, projected payments, and closing costs for the loan. It’s crucial for comparing costs between different lenders.
• Closing Disclosure: A detailed account of all the transaction costs, the Closing Disclosure must be provided to borrowers at least three business days before loan closure. It confirms the costs listed on the Loan Estimate.
• Preliminary Title Report: This document outlines any existing easements, encumbrances, and the legal status of the title for the property in question. It helps identify potential issues that could affect ownership.
• Appraisal Report: Lenders require an appraisal to understand the property's fair market value. This report assesses the home’s condition, features, and compares similar recent sales to determine its value.
• Credit Report: This report, derived from one or more credit bureaus, provides the borrower’s credit history and current credit score. It's used by lenders to assess the borrower's creditworthiness.
• Proof of Homeowners' Insurance: This verifies that the property to be purchased is insured. Lenders require this to ensure the property is protected against damages.
• Home Inspection Report: Although not always required by the lender, a home inspection report is crucial for the buyer. It can reveal hidden problems with the property before the purchase is finalized.

Together with the Fee Worksheet, these documents form a thorough packet of information for anyone looking to understand the financial implications of buying, selling, or refinancing a property. They ensure borrowers are well-informed about the obligations and expenses associated with their mortgage or loan, aiding in making informed financial decisions.

• The Loan Estimate is very similar to the Fee Worksheet as it breaks down the costs associated with the loan. The Loan Estimate provides borrowers with a clear look at the interest rate, monthly payments, and total closing costs for the loan. Much like the Fee Worksheet, it offers detailed listings of loan costs, ensuring transparency for the borrower about where their money is going.

• A Closing Disclosure also mirrors the Fee Worksheet in providing an itemized list of final credits and charges. This document is given to borrowers so they can see the exact costs they will be responsible for at closing, which includes any adjustments from the initial Loan Estimate. Both documents ensure borrowers are fully informed about the financial aspects of their loan transaction.

• The Settlement Statement (HUD-1) is comparable because it details the buyer’s and seller’s closing costs separately but within the same document. It plays a crucial role in real estate transactions involving a mortgage, similar to the Fee Worksheet, by itemizing fees charged to the borrower.

• Good Faith Estimate (GFE), although now replaced by the Loan Estimate and Closing Disclosure for most mortgage loans, shared similarities with the Fee Worksheet through its goal to inform borrowers of their expected costs at the settlement of the loan. Both documents provided estimates that could help borrowers in budgeting for their mortgage transaction.

• The Truth in Lending Act (TILA) disclosure complements the Fee Worksheet’s purview by outlining the terms of a loan, including the annual percentage rate (APR), total costs to the borrower, and a payment schedule. This document ensures borrowers are aware of the financial commitment they are undertaking, akin to the fee estimates provided in the Fee Worksheet.

• A Preliminary Title Report offers insights into potential issues with the property’s title, listing liens, and encumbrances that could affect the buyer’s ownership. While it focuses more on the legal aspects of the property being purchased, it shares the objective of the Fee Worksheet in preparing the buyer for potential costs and considerations in the purchase process.

• The Appraisal Report provides an estimate of the value of the property being purchased, which is crucial for securing a mortgage loan. While primarily focused on property valuation, it relates to the Fee Worksheet by affecting loan-to-value ratios that can influence mortgage insurance premiums and interest rates, potentially altering the costs outlined in the Fee Worksheet.

Completing the Fee Worksheet accurately is crucial in processing a loan efficiently and transparently. This guide highlights several dos and don'ts to assist borrowers in navigating this essential document.

Things You Should Do

• Verify all personal information: Ensure that details such as your name, loan number, and the subject property address are correctly filled out. Errors in this information can lead to delays.
• Understand fee estimates: Recognize that the fees listed are estimates and that the actual charges may vary. It’s important to be prepared for potential adjustments.
• Review itemized fees carefully: Carefully look over each charge listed under sections like "Items Payable in Connection with Loan" and "Title Charges" to understand what each fee is for.
• Check the calculations: Confirm that all the figures, especially those involving interest rates and total loan amounts, are calculated correctly. Mistakes in calculations can significantly affect your financial responsibilities.
• Confirm the loan details: Double-check the loan type, term, and program to ensure they match what you agreed upon with your lender.
• Ask questions: If there are items or terms on the worksheet that you don't understand, don't hesitate to ask your lender for clarification.
• Update the form if necessary: If there are any changes to your loan details or if corrections are needed, make sure the form is updated promptly to reflect these changes.

Things You Shouldn't Do

• Ignore discrepancies: Don’t overlook any differences between what you were told by your service provider and what is detailed on the form. Address these discrepancies immediately.
• Assume estimates are final: Avoid assuming that the estimated fees are the exact amounts you will pay. Be prepared for possible adjustments.
• Fill out the form in a hurry: Rushing through the form can lead to mistakes. Take your time to ensure all information is accurate and complete.
• Skip over unfamiliar terms: Don't ignore terms or fees that you don't understand. Failing to clarify these can lead to surprises down the line.
• Forget to confirm the interest rate: Ensure the interest rate listed matches what you agreed upon. A discrepancy here can affect your monthly payments and overall loan cost.
• Overlook the total loan amount: Don’t miss checking the total loan amount against your calculations. Errors here can lead to incorrect estimation of your financial obligations.
• Submit without reviewing: Never submit the worksheet without giving it a thorough review. Confirming all details are correct can save time and prevent issues later in the loan process.

Understanding the Itemized Fee Worksheet can often be confusing, leading to several misconceptions. Here's a breakdown of common misunderstandings:

• All fees on the worksheet are final and non-negotiable: Many people think that the charges listed on the Itemized Fee Worksheet are set in stone. However, some of the fees, especially those related to lender charges and third-party services, can sometimes be negotiated down or waived.

• The worksheet covers all possible fees: While the worksheet gives a comprehensive overview of the expected charges, there could be additional fees not listed that may arise during the closing process.

• Estimates are guarantees: The figures provided are estimates, not exact amounts. The actual charges incurred at settlement can be higher or lower than those on the worksheet.

• Every item applies to your transaction: Not every fee outlined on the worksheet will apply to your particular transaction. Specific charges depend on various factors such as loan type, location of the property, and buyer or seller agreements.

• A lower total estimated closing cost means a better loan deal: While lower closing costs can seem attractive, they don't necessarily equate to a better loan offer. It's important to consider the loan's interest rate and terms, as a lower rate could save you more over the loan's lifetime despite higher upfront costs.

• Items marked 'Paid Outside Closing (POC)' are optional: Fees marked as POC, such as a credit report fee or appraisal fee, are not optional but rather indicate that these fees will be paid by the borrower before closing. They are part of the overall transaction costs.

• All title-related charges are the same no matter where you close: Title charges can vary significantly depending on local regulations and the title company. Shopping around for title services could result in savings.

• Fees estimated on the worksheet do not affect the Annual Percentage Rate (APR): Certain charges, especially those tied to the loan itself (like origination fees), are included in the APR calculation. A thorough understanding of how these fees influence the APR is crucial for comparing loan offers effectively.

It's critical for borrowers to review the Itemized Fee Worksheet closely and ask questions about any charges they don't understand. Working with a trusted advisor can help navigate these details and potentially save money during the loan closing process.

The Fee Worksheet is a crucial document for anyone involved in a loan transaction, serving as a detailed guide to the potential costs associated with securing a loan. Understanding its structure and purpose can help borrowers navigate the loan process more effectively. Here are ten key takeaways about filling out and using the Fee Worksheet:

1. The Fee Worksheet provides estimates of charges likely to be incurred at the loan settlement, giving borrowers a comprehensive view of potential costs.
2. It includes itemized sections for different types of fees, such as loan origination fees, title charges, government recording, and transfer charges, as well as additional settlement charges, helping borrowers understand the breakdown of costs.
3. Actual charges may vary from the estimates provided on the form. This flexibility underscores the importance of preparing for potential variations in closing costs.
4. Not all listed fees will apply to every transaction, emphasizing the need for borrowers to consult with their service providers about which charges are relevant to their specific situation.
5. Loan details, including the loan number, interest rate, type of loan, and loan term, are clearly outlined, which is vital for record-keeping and understanding the loan structure.
6. The form lays out estimated reserve/prepaid costs, such as daily interest, homeowner's insurance, and property taxes, helping borrowers prepare for upfront expenses required by the lender.
7. A transaction summary is provided, calculating the total estimated monthly payment and total estimated funds needed to close. This summary assists borrowers in assessing the overall affordability of the loan.
8. The Fee Worksheet indicates who is responsible for each fee, using codes like 'S' for seller-paid, 'B' for broker-paid, 'L' for lender-paid, and 'P' for paid outside of closing. This clarifies the financial responsibilities of each party.
9. Understanding how closing costs and estimated reserve/prepaid costs contribute to the total funds needed at closing can guide borrowers in budgeting for their home purchase or refinance.
10. The document highlights the importance of communication between borrowers and their service providers, ensuring that all parties have a clear understanding of the costs involved and who will be covering them.

The Fee Worksheet is an invaluable tool for anyone looking to secure a loan, providing clarity and insight into the financial aspects of the loan settlement process. By familiarizing themselves with this document, borrowers can approach the loan process with confidence, equipped with a better understanding of what to expect in terms of costs.