For all of your mortgage needs, we specialize in FHA, VA, USDA, Conventional, Jumbo, Rehab, and New Construction anywhere in Minnesota, Oregon and Washington.
Brian Merritt

Mortgage Loan Expert / Owner 

NMLS# 292485

Closing costs

On the day you actually buy your new home, in addition to your down payment and the prepaid property tax and homeowners insurance premiums, you'll need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers.

While other lenders will hook you in by charging a bunch of fees to start your application, we don't do that.  We treat you with respect and won't charge you a penny for anything upfront and you won't see any JUNK FEES later on either.  We won't charge any Origination Fees, Underwriting Fees, Processing Fees or anything other than 3rd party charges like an Appraisal or Credit Report where you will only pay the actual invoice at closing.

Other closing costs are possible and should be considered when evaluating your financial situation. These may include, but are not limited to:

  • Title insurance fee
  • Survey charge
  • Attorney fees or escrow fees
  • Document preparation fee
  • Garbage or trash collection fees
  • Points - up-front interest paid in return for a lower interest rate. Each point is one percent of the loan amount. Sometimes you can contract for the seller to pay your points

NOTE: Consider closing costs when choosing one mortgage plan over another. The good news is that if your cash is limited, some mortgage plans allow the seller to pay some or all of your closing costs, such as title insurance, escrow fees, and points. Certain closing costs can sometimes be added to the amount of mortgage loan you're receiving.

Figuring Out Your Monthly Income

When you apply for a home loan (and even long before that, when you first speak to a REALTOR® the first question may likely be "How much is your income?" In making this determination, lenders consider the income of all parties who will be owners of the property.  Your Loan Officer will review your proof of income and determine how an underwriter will read and allow as verifiable income.

Figuring Out Your Monthly Debt

Lenders are interested mainly in your present monthly payments because they want to be sure you can handle the mortgage payment you'll be applying for. Different mortgage plans consider payments on any debt that won't be paid off within, for example, six months, nine months, or a year.

Amount of Your Down Payment

Your down payment reduces your loan amount. The bigger your initial down payment, the smaller your loan, which reduces the monthly mortgage payment.

The hardest part of buying a house is proving that your money really is YOUR MONEY.  Any large amounts of money you hold at home, often called, "Mattress Money" cannot be verified as a source of funds for a down payment or closing costs.

Mortgage plans have various down payment requirements and they can range from 0% down on a VA – Veterans Administration Loan or a USDA Rural Housing Loan - to between 3 and 5% down on an FHA – Federal Housing Administration Loan - or 5% - 20% down, which is the traditional amount for a conventional loan. In addition, special state programs for first-time home buyers may set different sums, which are usually lower than conventional financing.

If you put less than 20% down on most loans, you'll be asked to protect the lender by carrying private mortgage insurance (PMI). Carrying PMI ensures that the debt is repaid if you default on the loan. This adds approximately an extra half a percent onto the loan.

FHA mortgages, in return for their low-down-payment requirements, also charge for mortgage insurance premiums (MIP).

Brian Merritt

Mortgage Loan Expert


Minuteman Mortgage


25777 110th St
Detroit Lakes, MN 56501

Office: 218-850-2112




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