Help with undestanding of Closing costs

[Surya Kumar]

I am going to close my first ever purchase (105k with 20% down payment). Just got a loan estimate from my lender. I have to accept it is more than what I estimated.I actually estimated at 4-5%.I would like to understand the closing costs mentioned by the lender so that I have a better understanding before closing.

• Loan Costs --- $4342.

A.Origination Charges - $1590

0.655% of Loan Amount (Points) - $550 ---> Is buying this point compulsory?

Lender Origination fee - I understand this.

B.Services You cannot shop for $612 ---> I understand this.

C.Services You can shop for

Survey - $250 --> What is this fee for? Who pays this generally? Is this service compulsory?

Title - ALTA 8.1 Endorsement $25 --> What is this fee for? Who pays this generally? Is this service compulsory?

Title - ALTA 9.0 Endorsement $150 ---> What is this fee for? Who pays this generally? Is this service compulsory?

Title - Closing/Escrow fee $1115 --> Is this same as earnest money?

Title - Lender's title insurance $600 --> Do I have to pay this at closing? How can I shop for Lender's title insurance?

• Other Costs --- $3978

E. Taxes and Other Government Fees $716

Recording Fees and Other Taxes $295 --> If I understand this the seller would pay for this. Is this correct?

Transfer Taxes $421 --> I understand the fee. Who pays this generally?

F. Prepaids $595

Homeowner's Insurance Premium (12 months) $420 --> I understand this fee.

Mortgage Insurance Premium ( months)

Prepaid Interest ($10.93 per day for 16 days @ 4.750%) $175 --> I am not sure what this is.

Property Taxes ( months)

G. Initial Escrow Payment at Closing $2,304

Homeowner's Insurance $35.00 per month for 2 mo. $70 --> I get this.

Mortgage Insurance per month for mo.

Property Taxes $558.52 per month for 4 mo. $2,234 --> I am buying this property in July 2018. Is this property tax for

March, April, May, June 2018?

H. Other $363 --> I get this.

Title – Owner's Title Insurance (Optional) $363

Any help in understanding this or to reduce the closing costs would be really welcome.